▶ Practice this concept

🧱 See It

The percent → decimal → multiply method from before doesn't change. What changes is the everyday situation it's used in, and whether the result gets added to a price or subtracted from it.

✏️ Draw It

SituationWhat happens to the price
Sales Taxfind the amount, then ADD it
Tipfind the amount, then ADD it
Discountfind the amount, then SUBTRACT it

The percent → decimal → multiply step never changes — only what happens after it does.

🔢 Write It

amount = percent (as a decimal) × original price

final = original price ± amount

Plus for tax and tips. Minus for discounts. Decide which one BEFORE calculating anything.

💡 Worked Examples

Example 1 — Sales Tax: a $40 item with 8% sales tax

  1. Turn the percent into a decimal: 8% = 0.08
  2. Find the tax amount: 0.08 × 40 = $3.20
  3. Add to the original price: $40 + $3.20 = $43.20
  4. Answer: $43.20

Example 2 — Tip: a $25 restaurant bill with an 18% tip

  1. Turn the percent into a decimal: 18% = 0.18
  2. Find the tip amount: 0.18 × 25 = $4.50
  3. Add to the original bill: $25 + $4.50 = $29.50
  4. Answer: $29.50

🧠 Quick Reference

Same method every time: percent → decimal → multiply by the original price. Tax and tips ADD to the price. Discounts SUBTRACT from the price. Always write the amount and the final total as two separate labeled lines.
👪 For Parents & Tutors

BC Curriculum (Level 2 / Grade 7, Financial Literacy): "Financial percentage calculations (sales tax, tips, discount, sale price)."

Watch for: forgetting whether a given scenario adds or subtracts the calculated amount — tax and tips always increase the price, discounts always decrease it. Have him explicitly label "add" or "subtract" as part of reading the problem, before any calculation begins, exactly like the discount-then-final-price separation already established on the Level 1 Percents page.

Comes up again: this directly extends that Level 1 page to real-world contexts and prepares for Level 4 (Grade 9) banking, simple interest, and budgeting content.