Question

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?
$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**.