 Hello and welcome to the session. In this session we shall learn the effect of sales tax on total cost price and what is the increase in the amount when a person receives or tip and commission fees on services. First of all let us learn about tax with the help of an example. Now if you buy a mobile phone for $100 and the tax you pay on its purchase is $5 then you have to pay $105 for this mobile phone. Now the question is how do you find the price of mobile phone with sales tax. Now here we added sales tax to the cost price of this mobile phone so we can say an additional amount that gets added to the price of an item is called tax. And we pay sales tax when we purchase something. Now suppose sales tax is given in percent let it be 6% and the cost price is given as $600. It means if we have to pay 6% sales tax on a cost price of $600 now tax is equal to 3% into amount here 3% means the tax percent. Now here we have sales tax percent is equal to 6% and cost price is equal to $600 so sales tax is equal to 6% into amount which is $600 which is equal to 6 upon 100 into $600 which is equal to $36. So $36 is the sales tax on $600. Now the total cost price is equal to cost price plus sales tax. Now here cost price is $600 and sales tax is $36 so this is equal to $600 plus $36 so total cost price is equal to $636. Now let us see how to find sales tax percent. Now we already know about this formula so if we know the tax paid and the amount then we can easily find the tax percent from this formula. Now let us discuss it with the help of an example. Now in this example a surfboard is given to us and cost of surfboard is given as $400 and sales tax is given as $12. And we have to find the percent of sales tax. Now using this formula we have sales tax that is equal to $12 is equal to sales tax percent that is 3% into amount that is $400. And this implies $12 is equal to $T upon 100 into $400 which further gives $12 is equal to $4T and this implies $T is equal to $12 upon 4. Now $4 into $3 is $12 therefore $T is equal to $3. Therefore we have tax is equal to 3% so the percent of sales tax is 3%. Similarly when the tax percent and the tax amount is given to us then we can find the cost price using this formula. Now let us discuss about gradually or tip. Now we know that whenever we go to a restaurant or a hair salon then we pay a tip. So gradually or tip is an extra money given by us apart from the amount we pay for the services. So we can say gradually or tip is a small amount of money in return for the services. So here the total price that we have to pay is equal to the regular price plus the tip. Now if tip is given in percent then amount of tip is equal to tip percent into regular price. Now let us discuss an example in which it is given that William wants to tip his taxi driver if his commute costs $25 and he wants to give the driver a 15% tip what is the total cost. Now let us start with the solution. Now here the commute cost is given equal to $25 and tip percent is equal to 15%. So first of all here we will find the amount of tip using this formula then after this we can find the total price by using this formula. So here the tip is equal to tip percent that is 15% into commute cost which is $25. So this is equal to 15 upon 100 into 25 which is equal to now 25 into 4 is 100. So this is equal to 15 upon 4 which is equal to $3.75. So here the total cost is equal to the commuting cost which is $25 plus tip which is equal to $3.75. So this is equal to $28.75 and now let us discuss commission fees. Now commission is the fees paid for the services rendered apart from the pay salary. Now let us discuss an example for this and here it is given that Nicole works in store where she earns a base salary of $75 per week and his employer offers her to pay 8% of sales which she will make from the customers. It means apart from her salary she will be given extra money from the sales she made which will be called her commission. So her commission will be equal to commission percent of sales that is commission percent into sales. Now suppose she wins sales of $500 in first week of the month. So let us find her commission for the first week. Now commission is equal to commission percent of sales. So here the commission is equal to 8% of the sales that is 8% into $500 which is equal to 8 upon 100 into 500 which is equal to $40. So her total pay for that week will be equal to base salary plus commission for that week. Now here the base salary is $75. Commission for first week is $40. So total pay is equal to $75 plus $40 which is equal to $115. So the total pay for the first week is $115. So in this session we have learnt about tax, gratuities and commission fees. And this completes our session. Hope you all have enjoyed the session.