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Solving Word Problems Involving Sales Tax: Kristoffer A. Rañola

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Solving Word Problems

Involving Sales Tax


KRISTOFFER A. RAÑOLA
Drill: Show me Board
Solve for the following.

8% of 300 is ___.
Drill: Show me Board
Solve for the following.

30 is ___% of 50.
Drill: Show me Board
Solve for the following.

15% of ___ is 30.


Drill: Show me Board
Solve for the following.

___ is 80% of 120


Drill: Show me Board
Solve for the following.

25% of ___ is 4.
Look at the following
pictures.
Look at the following
pictures.
Look at the following
pictures.
Look at the following
pictures.
Look at the following
pictures.
Look at the following
pictures.
•What can you say about the
pictures?
•Where do you think the
money came from for
constructing those buildings?
TAX
•a compulsory contribution to state
revenue, levied by the government
on workers' income and business
profits, or added to the cost of some
goods, services, and transactions.
PURPOSE OF TAX
• Taxation is a means by which governments finance
their expenditure by imposing charges on citizens
and corporate entities. The main purpose of taxation
is to accumulate funds for the functioning of the
government machineries. All governments in the
world cannot run its administrative office without
funds and it has no such system incorporated in itself
to generate profit from its functioning.
SALES TAX

•Sales tax applies to goods and


services you buy.
Bureau of Internal Revenue
• The Bureau of Internal Revenue (BIR) is an
attached agency of the Department of Finance. It
is tasked to assess and collect all national internal
revenue taxes, fees, and charges, and to enforce
all forfeitures, penalties, and fines connected
therewith.
Study the table:
Original New
Tax Rate Sales Tax
Price Price
P200 25% P50 P250
P300 30% P90 P390
P500 7% P35 P535
Read, analyze and solve the following problems.
1. A group of Grade 6-Archimedes ordered
foods amounting to P750 plus a 10% sales tax.
How much did the group pay to the cashier?
2. Ms. Anabelle Butin will be buying a washing
machine for P3,100 but a sales tax of 5.5% has
to be included. How much is the amount of tax?
GROUP ACTIVITY
1.) How much is the sales tax if an
item cost P760 at 5% rate?
1) P38 2) P39 3) P40
2.) What will be the new price of the
skirt that cost P1,120 at 25% tax
rate?
1) P1,400 2) P1,500 3) P1,600
3.) Mrs. Mendiola will be buying a
new cellphone for P11,540 but a sales
tax of 5.5% has to be included. How
much is the amount of tax?
1) P634.70 2) P635.80 3) P636.90
4.) I will buy a bar of white chocolate
that costs P198.70. How much will I
pay for if 10% tax will be collected
from the item?
1) P216.57 2) P218.57 3) P220.57
5.) Mrs. Fajardo and Mrs. Bacula plan to eat
at a buffet restaurant to celebrate Mrs.
Fajardo’s birthday. P995 will be charged per
head plus a 10% VAT. How much will they
pay in all?
1) P1,094.50 2) P2,189.00 3) P3,995.50
HOW DO WE COMPUTE FOR
THE SALES TAX?

SALES TAX = ORIGINAL PRICE X TAX RATE


NEW PRICE = ORIGINAL PRICE + SALES TAX
FORMATIVE ASSESSMENT: CHOOSE
THE LETTER OF THE CORRECT
ANSWER.
1. How much is the sales tax if an item
cost P468 at 6% rate?
a. P28.06 c. P28.08
b. P28.09 d. P28.09
2. What will be the new price of the
dress that cost P325 at 25% tax rate?
a. P406.25 c. P407.25
b. P406.35 d. P407.35
3. Mrs. Dizon will be buying a new flat
screen TV for P12,300 but a sales tax of
5.5% has to be included. How much is
the amount of tax?
a. P666.50 c. P686.50
b. P676.50 d. P696.50
4. I will buy a bar of chocolate bar that
costs P155.60. How much will I pay for
if 10% tax will be collected from the
item?
a. P171.16 c. P173.16
b. P172.16 d. P174.16
5. Ms. Liwanag and Mrs. Santos plan to
eat at Bossing’s Buffet SM City
Valenzuela branch to celebrate Ms.
Liwanag’s birthday. P330.00 will be
charged per head plus a 5% VAT. How
much will they pay in all?
a. P393.00 c. P593.00
b. P493.00 d. P693.00
HOMEWORK
Find the amount of tax.
1. 20% on P350.
2. 22% on P800.
3. 15% on P1,000.
4. 2% on P375.
5. 18% on P150.

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