MEL3E
Mathematics for Work and Everyday Life
Unit 3: Shopping
Activity 2: Trip To The Mall
"But It's On Sale!"
A trip to the mall can lead to a not-so-surprising discovery that a store is having a sale. That one item that you "never knew you always wanted" has had it's price reduced and you're thinking about buying it.
When you see a sign for 30% off, you have a rough idea that the item has been significantly reduced in price. But how much is it really going to cost you? Being able to do the math in the store is an important skill that will help you decide whether or not to make a purchase.
Photo Credit: Donna Bills via Flickr.com
"And With Tax, That Comes To..."
Most goods and services in Ontario have an additional sales tax of 13% added to the final sale price. If you forget about the tax, it can be a big surprise when you see the total price for your purchases. Most people have developed their own way to roughly calculate the tax on an item.
Review
During the course of this activity, you will be required to work with percentages in order to calculate sale prices and HST.
Watch the video on estimating percents. You can use your estimating skills to get a rough value of a percentage. This can help you in cases where the exact value isn't needed or when you want to check and see if your calculated value is a reasonable number.
Watch this video on calculating percents to review how to calculate exact values.
Complete this quiz in order to review your skills related to estimating and calculating percents.
Incentives
There are a variety of incentives that stores can use to try and get you to shop in them. Often a discount is offered on merchandise. The slideshow below shows some of the different types of discounts that you may see.
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Percentage Discount ("x% Off")A percentage discount is usually worded as "x% off". For example, if a sweater is 20% off , then you are paying only 80% of the regular cost of the item. Photo Credit: Tom Magiery via Flickr |
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Buy X Get 1 FreeIn order to encourage customers to buy more items, a store may offer a free item for every 1, 2 or 3 items that you buy. You can convert that to a percentage discount by using the following equation.
Photo Credit: Lori Goldberg via Flickr |
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X for X DollarsSome sales will offer a certain number of items for a set price. You can calculate the price per object by using the following formula: Price per Item = Cost of Items / Number of Items Photo Credit: hjhipster via Flickr |
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Free GiftA free gift can be included with a purchase. Because you are not selecting the gift, you need to ask yourself if the gift is something you want, or if it has a value to you. |
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Don't Pay The TaxThe harmonized sales tax (HST) is 13%. So an event that advertises itself as "Don't Pay The Tax" is offering a discount of 13%. |
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Loyalty PointsSome stores offer loyalty programs where you accumulate points with every purchase. Those points can be redeemed for various rewards, such as gift certificates or free merchandise. |
Estimating Discounts
When you are in the store, trying to decide on a purchase, it's helpful to be able to estimate the purchase price of the item on sale.
You have already looked at how to estimate with benchmark percents (you can review the video on estimating). Use your estimating skills to complete the following quiz.
Calculating Discount
An estimate is fine to get a rough idea of the sale price of an item. However, you will also want to be able to calculate the exact price (you can review the video on calculating percentages).
Example
A winter coat that normally sells for $375.00 is on sale for 25% off. What is the sale price of the coat?
Method #1
In this 2 step technique you:
- calculate the amount of the discount
- subtract the discount from the original price.
1. Calculate the amount of the discount
Discount = $375.00 x 25/100
Discount = $93.75
2. Subtract the discount from the original price
Sale price = $375.00 - $93.75
Sale price = $281.25
Method #2
In this 2 step technique you:
- calculate the percentage of the original price you still have to pay
- multiply the original price by the percentage of the price you have to pay.
1. Calculate the percentage of the original price you still have to pay
If the sale is offering you 25% off, what percentage do you still have to pay?
Percentage to Pay = 100 - 25
Percentage to Pay = 75
You still have to pay 75% of the original price.
2. Multiply the original price by the percentage of the price you have to pay.
Sale price = $375.00 x 75/100
Sale price = $281.25
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Practice
You can get more practice by determining the sale price for the following examples.
Questions
- Determine the sales price for a bag that costs $49.95 that is on sale for 40% off.
Answer
discount = $49.95 x 40/100 = $19.98
sale price = $49.95 - $19.98 = $29.97
- Determine the sales price on a bike that usually costs $249.95 but is on sale for 25% off.
Answer
$249.95 x 25/100 = $62.49
$249.95 - $62.49 = $187.46
Calculating Tax
Most consumer goods and services in Ontario have a tax added to the final sale price. This tax--the Harmonized Sales Tax (or HST)--is equal to 13% of the price of the item.
Review this video on calculating tax on an amount.
Example
A winter coat sells for $281.25. What is the total price of the coat with HST added?
Method #1
In this 2 step technique you:
- calculate the amount of sales tax
- add the sales tax to the original price.
1. Calculate the amount of sales tax
Tax = $281.25 x 13/100
Tax = $36.56
2. Add the sales tax to the original price.
Total price = $281.25 + $36.56
Total price = $317.81
Method #2
When you pay a 13% tax on an item, you are paying 100% of the price of the item plus an extra 13%. You can find the total cost of the item by multiplying the before-tax cost by 113%.
Total Price = 281.25 x 113/100
Total Price = $317.81
Previous Next Question
What is the cost--with tax--of a pair of boots that cost $179.99?
AnswerTotal Price = $179.99 x 113/100
Total Price = $203.39
Therefore the total price, with tax, will be $203.39.
Final Sale Price
To calculate the final price for an item on sale, you need to:
- calculate the discounted price and then
- add the HST
Example
You are interested in buying a bluetooth speaker. You have found two stores that are offering the following deals on a similar speaker.
| Electronics City | The E-Depot |
|---|---|
| Bluetooth speaker regularly sells for $88.99. All items in store 25% off. |
Bluetooth speaker regularly sells for $97.99. On sale this week for 30% off. |
In order to select the best deal, you want to determine the sales price for each.
- Estimate sales price for both offers.
- Calculate the sales price for both offers.
- Calculate the tax and add it to the sale price to get a final total.
After performing the calculation, you can watch these videos to check your answer and see how the calculations were made.
Calculations for the Electronics City Speakers
Calculations for The E-Depot Speakers
You can also use this online calculator to help you determine discounts and sales prices.
Great Deal!
Most people have a 'big ticket' item on their wish list. Go to an online or physical store and find a price for an expensive item that you'd like to buy.
Now imagine that you find the item for sale for 20% off. For your item:
- Estimate the sale price of the item without tax.
- Estimate the tax you would pay after the discount.
- Calculate the sale price of the item (including tax).
Consider how do sales affect your purchasing decisions?
Introduction
Learning Goals and Success Criteria