Jese buys his coworkers lunch from the local steakhouse. The food costs $105.79, and the sales tax rate is 9%. Jesse wants to leave a 20% tip based on the pre-tax amount. How much will the total be, including tax and tip?

1 answer

To calculate the total cost including tax and tip, we can break down the problem into steps:

  1. Calculate the Sales Tax: The sales tax rate is 9%. First, we calculate the amount of sales tax on the pre-tax amount of $105.79.

    \[ \text{Sales Tax} = \text{Pre-Tax Amount} \times \text{Sales Tax Rate} \] \[ \text{Sales Tax} = 105.79 \times 0.09 = 9.4781 \]

    Rounding to two decimal places, the sales tax is approximately $9.48.

  2. Calculate the Total Cost with Tax: Now we add the sales tax to the pre-tax amount to get the total cost.

    \[ \text{Total Cost with Tax} = \text{Pre-Tax Amount} + \text{Sales Tax} \] \[ \text{Total Cost with Tax} = 105.79 + 9.48 = 115.27 \]

  3. Calculate the Tip: Jese wants to leave a tip that is 20% of the pre-tax amount.

    \[ \text{Tip} = \text{Pre-Tax Amount} \times \text{Tip Rate} \] \[ \text{Tip} = 105.79 \times 0.20 = 21.158 \]

    Rounding to two decimal places, the tip is approximately $21.16.

  4. Calculate the Final Total: Finally, we add the tip to the total cost with tax to find the overall total amount.

    \[ \text{Final Total} = \text{Total Cost with Tax} + \text{Tip} \] \[ \text{Final Total} = 115.27 + 21.16 = 136.43 \]

Thus, the total amount, including tax and tip, is $136.43.