How to Calculate Sales Tax without a Calculator | Calculating Sales Tax by Hand | Math with Mr. J
Summary
TLDRIn the video 'Math with Mr. J,' the host teaches viewers how to manually calculate sales tax and the total cost of a purchase. The example uses a price of $59.49 with a 7.5% sales tax. The process involves converting the percentage to a decimal, multiplying it by the price, and then adding the tax to the original price to find the total cost. The host demonstrates each step in detail, including rounding the sales tax to the nearest cent, resulting in a total cost of $63.95.
Takeaways
- ๐งฎ To calculate sales tax by hand, you first need to convert the sales tax rate from a percentage to a decimal.
- ๐ข The conversion from percentage to decimal is done by dividing by 100 and moving the decimal point two places to the left.
- โ The decimal form of a 7.5% sales tax rate is 0.075.
- ๐ To find out how much sales tax you owe on an item, multiply the item's price by the tax rate in decimal form.
- ๐ When multiplying a decimal by a whole number, you can ignore the decimal for the multiplication and then place it in the correct position in your final answer.
- ๐ The number of digits to the right of the decimal in your final answer should match the number of digits to the right of the decimal in the original price.
- ๐ต When dealing with money, it's important to round your sales tax calculation to the nearest hundredth (two decimal places).
- ๐ If the hundredths place is 5 or more, round up; if it's less than 5, round down.
- ๐ฒ To find the total cost of an item including sales tax, add the calculated sales tax to the original price of the item.
- ๐ When adding decimals, align the decimal points and proceed with the addition as you would with whole numbers.
Q & A
What is the main topic of the video?
-The main topic of the video is how to calculate sales tax by hand without using a calculator.
What is the example sales price used in the video?
-The example sales price used in the video is $59.49.
What is the sales tax rate used in the example?
-The sales tax rate used in the example is 7.5 percent.
How does the video demonstrate converting a percentage to a decimal?
-The video demonstrates converting a percentage to a decimal by dividing the percentage by 100 and moving the decimal point two places to the left.
What is the decimal equivalent of the 7.5 percent sales tax rate as shown in the video?
-The decimal equivalent of the 7.5 percent sales tax rate is 0.075.
How does the video approach multiplying the sales price by the tax rate?
-The video multiplies the sales price by the tax rate in decimal form, taking care to place the decimal in the correct position in the final answer.
What is the result of multiplying $59.49 by the tax rate of 0.075 as shown in the video?
-The result of multiplying $59.49 by the tax rate of 0.075 is $4.46, which is the sales tax amount.
How does the video ensure the correct placement of the decimal in the sales tax calculation?
-The video ensures the correct placement of the decimal by counting the number of digits to the right of the decimal in the original price and matching that in the final sales tax amount.
What rounding rule is applied to the sales tax calculation in the video?
-The video applies the standard rounding rule where if the digit to the right of the last desired decimal place is 5 or more, the last digit is increased by one.
How does the video calculate the total cost including sales tax?
-The video calculates the total cost by adding the original price to the calculated sales tax amount, ensuring the decimals are aligned during the addition.
What is the final price including sales tax as presented in the video?
-The final price including sales tax is $63.95.
Outlines
๐งฎ Calculating Sales Tax by Hand
This paragraph introduces a tutorial on calculating sales tax manually. The presenter, Mr. J, demonstrates how to determine the sales tax on an item priced at $59.49 with a 7.5% tax rate. The process begins by converting the percentage to a decimal by dividing by 100, which transforms 7.5% into 0.075. The next step involves multiplying the item's price by the decimal tax rate to ascertain the sales tax amount. The presenter meticulously shows the multiplication process, emphasizing the importance of aligning the decimal points and carrying over when necessary. The result is then rounded to the nearest hundredth to reflect the typical money format, leading to a sales tax of $4.46.
๐ต Finding the Total Cost with Sales Tax
The second paragraph continues the tutorial by showing how to calculate the total cost of an item inclusive of sales tax. With the sales tax amount determined in the previous step ($4.46), the presenter instructs viewers to add this to the original price of the item ($59.49). The addition is carefully carried out, ensuring the decimal points are aligned. The final total cost is calculated to be $63.95, which includes the original price plus the sales tax. The paragraph concludes with a recap of the entire process, highlighting the importance of manual calculations for understanding sales tax implications, and ends with a sign-off from the presenter.
Mindmap
Keywords
๐กSales Tax
๐กDecimal Form
๐กPercent
๐กMultiplication
๐กDecimal Places
๐กHundredths Place
๐กRounding
๐กTotal Cost
๐กCalculator
๐กHand Calculation
Highlights
Introduction to calculating sales tax by hand without a calculator
Example given: calculating sales tax on $59.49 with a 7.5% tax rate
Conversion of sales tax rate from percentage to decimal form
Moving the decimal point twice to the left to convert 7.5% to 0.075
Multiplication of the original price by the tax rate in decimal form
Detailed step-by-step multiplication of 59.49 by 0.075
Explanation of placing the decimal in the multiplication result
Final multiplication result and placement of the decimal point
Rounding the sales tax to the nearest hundredth place
Calculation of the sales tax amount: $4.46
Adding the sales tax to the original price to find the total cost
Aligning decimals when adding money amounts
Final total cost calculation: $63.95
Conclusion and summary of the sales tax calculation process
Gratitude expressed to viewers for watching the tutorial
Transcripts
[Music]
welcome to math with mr j
[Music]
in this video i'm going to cover how to
calculate sales tax by hand so we're
going to write everything out without
using a calculator this will show all of
the steps for calculating sales tax and
then the total cost with the sales tax
included let's jump into our example
where we have 59.49
plus a sales tax rate of 7.5 percent so
the first thing that we need to do is to
calculate how much sales tax we will be
paying we do this by multiplying the
price by the tax rate now the tax rate
is in the form of a percent so we want
to get this percent to decimal form
percent means per 100 so we divide the
percent by 100 to convert it to a
decimal we can do this by moving the
decimal twice to the left and it's as
simple as that so let's move our decimal
twice to the left to change this to
decimal form
so i'm going to rewrite it underneath
here that way i have enough room so we
have 7.5
sales tax let's divide that by 100 which
we can do by moving the decimal once
and then twice to the left that changes
our percent to a decimal we fill the
tenths place with a zero and i'm going
to put a zero in the ones place as well
to show that we do not have any whole
numbers here so our decimal form of 7.5
percent is 0.075
once we have that we can multiply our
price by that decimal and that's going
to give us 7.5 percent of 59.49 so let's
multiply our original price by the tax
rate in decimal form so we have 59
49
times
0.075
and i'm going to go to the right in
order to solve this so when we multiply
decimals we can take the decimals out
and then place the decimal in our answer
at the end so let's do
5
9
4
9
times
75 and again we will worry about the
decimal at the end so five times nine
forty-five
five times four is twenty plus four is
twenty-four
five times nine is 45 plus 2 is 47
and then 5 times 5 is 25 plus 4
is 29 so we are done with this 5 the 4
the 2 and the 4.
we need our 0 here because we are moving
1 place value to the left and we start
with 7 times 9 which is
63 so carry our 6
seven times four is twenty-eight plus
six
thirty-four
seven times nine is sixty-three plus
three is sixty-six
and then 7 times 5 is 35 plus 6 is 41.
so now we add
5 plus 0 is 5
4 plus 3
is seven
seven plus four
is eleven
one plus nine is ten plus six
is sixteen
one plus two is three plus one is four
and then we have a 4
over here
so now we place our decimal so we look
back at the original problem and see how
many digits are to the right of a
decimal or behind the decimal so we have
one
two
three
four
five
five digits are to the right of a
decimal within our original problem that
means our answer needs five digits to
the right of the decimal so we can count
off one
two
three
four
five our decimal is placed in between
the fours let me rewrite our final
answer here without those lines
underneath
now we are working with money so
whenever we are working with money our
final answer is going to go to the
hundredths place
so we need to round this decimal to the
hundredths place
we have a six in the hundredths
we look at the digit to the right we
have a one so that means we stay the
same our answer
is going to be four dollars
and 46 cents
so that's how much we are paying in
sales tax that's 7.5
of 59.49
cents once we have that information we
take the original price and add that
sales tax that's going to give us our
final price the total cost
so we need to do our price of
59.49
and then add
our sales tax of four dollars
and 46 cents
and that will give us our final price
the total cost so let's go to the right
and add these now when adding decimals
we need to line up our decimals so we
have
59
49
and then 4
46
so lining up those decimals will line up
all of our places so let's add the
hundredths first nine plus six
fifteen
one plus four is five plus four is nine
bring our decimal straight down it's
lined up throughout the entire problem
nine plus four is thirteen
and then one plus five gives us six
so we get
sixty three dollars and ninety five
cents for our total cost that final
price with sales tax included so let's
write that over here so 63 dollars
and 95 cents
for our total cost there
so there you have it there's how you
calculate sales tax by hand
i hope that helped
thanks so much for watching
until next time
peace
you
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