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 listed 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 = list 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



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