Chapter 5 Spend Wisely. 5.1 Sales Tax Sales Tax on Purchases A % of price of an item or a % of all taxable items Sellers collect the sales tax from consumers.

Chapter 5 Spend Wisely

5.1 Sales Tax

Sales Tax on Purchases

• A % of price of an item or a % of all taxable items

• Sellers collect the sales tax from consumers for the government

• Sales x Price = Sales Tax

tax rate of item

• Price + Sales Tax = Total Cost of item

A. 89.99*0.045 =4.05+89.99=94.04

B. 3.5+1.8=5.3%369.89*0.053=19.06+369.89 = 389.49

Nontaxable Items

• Food, prescription drugs, labor, or services

Sales tax = Sales x Subtotal of Taxable tax rate items

Total = Subtotal + Subtotal + Sales Taxable Items Non Taxable Tax

Items

C. 309.59*.0525 =

16.25+309.59+56=

381.84

D.462.53*.0675=

31.22+462.53+225=

718.75

5.2 Sales Receipts

Sales Slips Extensions

• Sales slips show:– Number of units or quantity and description– Unit price– Extension = Unit price x Quantity of each item– Subtotal– Sales Tax– Total Sale

A. 600/100=6

6 x 8.99 =

53.94

B. 300/100 = 3

3*85.99=

257.97

Sales Slip Totals

Subtotal = Sum of extensions

Sales tax = subtotal x sales tax rate

Total of slip = subtotal + sales tax amount

C 3*3.89

5*5.79

11.67+28.95 =

40.62 * 0.0385 =

1.56 +40.62 = 42.18

D. 139.89*2=

89.99*2 =

459.76 * 0.075=

34.49+459.76=

494.24

5.3 Unit Price

Unit Price Comparison

• Price of one item or one measure of item

A. 3.29/18 = 0.18

B. 3.99/24 = 0.17

Group Pricing

C. 0.97/3 =

0.33

D. 53/5 =

10.60

5.4 Comparative Shopping

Prices at Sales, Different Stores, and in Different Amounts

• Can buy in bulk at discount stores

A. 16.29-15.67 =B. 18.25*2 =36.5-33.49=C. 1.49/53.7 =1.89/80.6 = D. 6*23.99 =3*32 =143.94-96=

Rental Options

• Can rent items you do not use often or need for short period of time

• Time periods-hourly, daily, weekly, and monthly

E. Daily 130*4=520 or 600?

F. Hourly 5*18 = 90 or

56 for 4 hours or

80 for 8 hours

Rent or Buy

• If need something on regular basis, should I buy?

• 2 steps:– Calculate annual cost of renting– Calculate how many years of renting to equal

purchase price

G. 169.99/25 = 6.8 days

H. 23.99*4 =95.96 per year to rent

349.99/95.96 = 3.6 years

5.5 Personal Internet Access

Internet Connection Costs

• ISP (Internet Service Provider) – connects home computer to internet

• Fees include:– Set-up fees– Equipment fees– Monthly access fees

• Ways to connect:– Dial-up connection– Cable connection– Digital subscriber line connection– Satellite connection

• Can have charges for:– 2nd phone line– E-mail account– Web page

• Protect computer from viruses with firewall or antivirus software

A. 39.95+5=44.95*12 = 539.40539.40+25+75+36.99 = 676.39

B. 40*24 = 960450 * 2 = 900875 for 2 years

960-875 = 85