Luca is planning to pay the restaurant bill for his coworkers. The bill was $193.75. A 4% tax was then added by the waiter. If Luca wants to leave a 16% tip on the total amount including the tax, how much should Luca pay?

Question

$201.50
$217.50
$224.75
$233.74

Answer 1

To find out how much Luca should pay, we need to calculate the tax amount, the total bill including tax, and then the tip based on that total.

1. Calculate the tax:

   • Tax = Original Bill × Tax Rate
   • Tax = $193.75 × 0.04 = $7.75

2. Calculate the total amount including tax:

   • Total Amount = Original Bill + Tax
   • Total Amount = $193.75 + $7.75 = $201.50

3. Calculate the tip:

   • Tip = Total Amount × Tip Rate
   • Tip = $201.50 × 0.16 = $32.24

4. Calculate the final amount Luca should pay:

   • Final Amount = Total Amount + Tip
   • Final Amount = $201.50 + $32.24 = $233.74

Thus, the total amount Luca should pay is $233.74.