Finding the total cost including tax or markup

In this lesson, we learn how to find the total amount, given an original amount and a tax or markup. The rate of markup or rate of tax is usually a percent.

Rules to find the total cost given the original amount and a tax or markup rate.

First consider the original amount.

Then consider the rate of tax or markup

To find the tax or markup, multiply the rate by the original amount.

To find the total cost, add the tax or markup to the original amount.

A laptop has a psted price of $790 before tax. If the sales tax rate is 6.5% find the total cost of the laptop with sales tax included. Round your answer to the nearest cent as necessary.

Solution

Step 1:

List price of the laptop = $790

Sales tax rate = 6.5%

Step 2:

Sales tax = 6.5% of $790 = 0.065 × 790 = $51.35

Step 3:

Total cost of laptop including sale tax = pst price + sales tax

= $790 + $51.35

= $841.35

A store bought a carton of apples for $85 and sold them at a markup of 20%. What price did the store sell the apples?

Solution

Step 1:

Price of apples = $85

Markup rate = 20% of $85

Step 2:

Markup = 20% of $85 = 0.2 × 85 = $17.0

Step 3:

Total cost of apples including markup = $85 + $17 = $102