Final answer:
Tips and markups are commonly seen in everyday life, such as dining out at a restaurant or purchasing items on sale. Tips are additional amounts given as a percentage of the bill, while markups refer to the increase in price above the cost. Examples of calculating tips and markups are provided.
Step-by-step explanation:
In everyday life, tips and markups are commonly seen in situations such as dining out at a restaurant or purchasing items on sale. Tips are the additional amount given to service providers, usually expressed as a percentage of the bill. Markups, on the other hand, refer to the increase in price of a product or service above its cost.
To understand how tips and markups are percentages of increase, we can use a few examples:
- Tips:
Let's say you had a meal at a restaurant and the total bill was $50. If you want to leave a 20% tip, you would calculate the tip amount by multiplying $50 by 20% (or 0.20). The tip amount would be $10 (50 x 0.20 = 10). - Markups:
If you bought an item on sale that was originally priced at $100, but now has a 30% markup, you can calculate the new price by adding 30% of the original price to the original price. In this case, the markup amount would be $30 (100 x 0.30 = 30), and the new price would be $130 (100 + 30 = 130).
In both cases, the tip and markdown amounts are expressed as percentages of the original price or bill, and they represent the increase in price or amount.