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Thought-Process to Discover Knowledge

Welcome to nubtrek.

Books and other education websites provide "matter-of-fact" knowledge. Instead, nubtrek provides a thought-process to discover knowledge.

In each of the topic, the outline of the thought-process, for that topic, is provided for learners and educators.

Read in the blogs more about the unique learning experience at nubtrek.

Introduction to Tax

This page introduces the terms bill-price, and tax. It explains that the seller collects the tax on behalf of government on the money transacted which is the sale-price and so the tax is calculated as a percent of the sale-price.

tax percent = 100 xx (bill price - sale price) // sale price.

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We learned about government and its functions in civics or social science. The government lays roads, provides security, etc. For these, the government requires money. Where does the government get money from?

• government charges some money on each financial transaction
• government charges some money on each financial transaction
• government prints money for these activities

The answer is "government charges some money on each financial transaction". The money charged on a sale is called tax

Which of the following is a meaning for the word "tax"?

• total automatic exchange
• money charged by the government on financial transactions
• money charged by the government on financial transactions

The answer is "money charged by the government on financial transactions".

What is the term used to refer "money charged on financial transactions"?

• Pronunciation : Say the answer once

Tax : Money charged by the government on financial transactions is the tax.

A shopkeeper sells a pen for 40 coins. As a statement of sale, the item and its price is printed on a paper and handed over to the buyer. What is the statement called?

• a bill
• a bill
• a ledger

A shopkeeper sells a pen for 40 coins. The price is inclusive of tax 2 coins. What is the sale price?

• 40/2 = 20
• 40-2 = 38
• 40-2 = 38

The answer is "40-2 = 38".

A shopkeeper sells a pen for 40 coins. The price is inclusive of tax 2 coins. The bill mentions the price as -- sale-price 38 coin + tax 2 coin = total 40 coins. What is the total price called?

• bill price
• bill price
• written price

Which of the following is a meaning for the word "inclusive"?

• containing as part of the whole
• containing as part of the whole
• inside a enclave or room

The answer is "containing as part of the whole".

What is the term used to refer "containing as part of the whole"?

• Pronunciation : Say the answer once

A shopkeeper sells a pen for 40 coins. The price excludes tax of 2 coins. What is the sale price?

• 40
• 40
• 40-2 = 38

The answer is "40". The customer pays 42 coins which is the bill-price, and the sale price is 40 coins.

Which of the following is a meaning for the word "exclude"?

• earlier method of doing something
• outside the given whole
• outside the given whole

The answer is "outside the given whole".

What is the term used to refer "outside the given whole"?

• Pronunciation : Say the answer once

Which of the following is a meaning for the word "bill"?

• a statement of money that is transacted or handled in a sale
• a statement of money that is transacted or handled in a sale
• a flower vase

The answer is "a statement of money that is transacted or handled in a sale".

What is the term used to refer "a statement of money that is transacted or handled in a sale"?

• Pronunciation : Say the answer once

A shopkeeper sells a pen for 40 coins. The price excludes tax of 2 coins.
The sale price is 40 coins.
Tax is 2 coins.
Billing price is 42 coins

The tax is usually given as a percentage. There are two ways the tax percent can be given.
•  the tax is given as percentage on the sale-price 2/40 xx100 percent.
•  the tax is given as percentage on the bill-total 2/42 xx100 percent.

Which one of the above is an appropriate choice in giving the tax percentage?

• percentage of sale-price
• percentage of sale-price
• percentage of bill-price

The answer is "percent of sale-price".

Note that government takes a tax on the sale as a percent.

For example: Sale price is 40 and tax percent is 5%. The tax is 2 coins. The bill price is 42.

If the tax is calculated on the bill price, then the tax is also taxed. Tax on tax is avoided by taxing the sale-price only.

Tax Percent : The tax as a percent of the sale-price is the tax percentage.
tax percent = 100 xx (bill price - sale price) // sale price.

A shopkeeper sells a pen for 44 coins. The price includes 10% tax.
What is the sale-price of the pen?

• sale-price =44xx100 // (100+10)
• sale-price =44xx100 // (100+10)
• sale-price =44xx90 //100

The answer is "sale-price =44xx100 // (100+10)". This is explained in the next page.

A shopkeeper sells a pen for 44 coins. The price includes 10% tax.

bill-price = 44 coins

bill price includes sale price 100% and tax 10%. That is bill-price 110% is 44 coins

110% bill-price = 44 coins
100% sale- price is =44xx100 // 110

A shopkeeper sells a pen for 44 coins. The price excludes 10% tax.

What is the sale-price of the pen?

• sale-price =44xx100 // (100+10)
• sale-price =44
• sale-price =44

The answer is "sale-price =44". This is explained in the next page.

A shopkeeper sells a pen for 44 coins. The price excludes 10% tax.

sale-price is the given = 44 coins

the tax on the sale price is 10% = 44xx10//100 = 4.4 coins.

bill price includes sale price and tax . That is bill-price =44 + 4.4 = 48.4 coins.

Price Inclusive of Tax : The marked price includes the tax and so it is the bill price.
marked price = billed price = sale price + tax

Price with Tax Extra : The marked price does not include the tax and so it is the sale price.
marked price = sale-price
billed price = marked price + tax

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