Jesse bought his co-workers lunch from the local steakhouse. The food costs $105.79. Sales tax is 9%, and he wants to leave a 40% tip. What is his grand total? Round your answer to the nearest hundredth.

Answer 1

To calculate the grand total Jesse will be paying, we need to consider the cost of the food, the sales tax, and the tip.

1. Calculate the sales tax: The sales tax is 9% of the food cost. \[ \text{Sales Tax} = \text{Food Cost} \times \text{Sales Tax Rate} = 105.79 \times 0.09 \] \[ \text{Sales Tax} = 9.4711 \]

2. Calculate the total cost including sales tax: \[ \text{Total Cost with Tax} = \text{Food Cost} + \text{Sales Tax} = 105.79 + 9.4711 \] \[ \text{Total Cost with Tax} = 115.2611 \]

3. Calculate the tip: The tip is 40% of the total cost with tax. \[ \text{Tip} = \text{Total Cost with Tax} \times \text{Tip Rate} = 115.2611 \times 0.40 \] \[ \text{Tip} = 46.10444 \]

4. Calculate the grand total: \[ \text{Grand Total} = \text{Total Cost with Tax} + \text{Tip} = 115.2611 + 46.10444 \] \[ \text{Grand Total} = 161.36554 \]

5. Round to the nearest hundredth: \[ \text{Grand Total (rounded)} = 161.37 \]

Thus, Jesse's grand total for lunch is $161.37.