Percentages in the Real World

Taxes, tips, mark-ups, discounts, and commissions.


Tax is extra money added on to a bill to pay to the city, state, or federal treasury.


Tips are money you give to waiters/waitress's for services at restaurants.


Mark-ups is when you buy something at its own price, then sell it for a bigger price


Discounts is when you get a small price off a bill, usually with coupons or sales.


Commission is where people who try to sell stuff get a part of a sale.

Taxes example

I go to the Exchange and get a game for $40.00 with 2% tax. You divide 40.00 by 100 and multiply the result by 2, getting $0.80. You then add the 80 cents to the 40 dollars and you get a total of $40.80.

Tips example

I eat at IHOP and receive $16.43 on my bill, and I leave the waiter a 17% tip. I multiply .17 and 16.43 and get 2.7931 for an answer. I round my answer to the nearest hundreds an get 2.79. The waiter's tip is $2.79.

Mark-up example

I am trying to start a business selling toys I buy 20 for $10 each and sell them for $20 each. I divide 10 by 100 and get 0.1. Then I divide 20 by .1 and get 200. Thus I get twice the amount I payed for.

Discount example

GameStop is having a sale: 40% off all PC games. I want Civ Beyond Earth. It costs $60.00, so I take the discount off of 60 dollars. I multiply 0.01 and 60 and get .6 then I multiply .6 and 40 and I get 24. I take off the $24, so then I only have to pay $36

Commission example

I sold 4 cars as a car salesman. I get 10% of the money from each car, and each car costs $23,000. 23,000x0.01 = 230 ---> 230x10 = 2,300- money made from one car 2,300x4 =9,200 So, I earned $9,200 from selling the 4 cars