Question

Question

Jesse 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 point)

Answer 1

To calculate the total amount Jesse will spend, we will follow these steps:

1. Calculate the sales tax.
   The sales tax is calculated based on the food cost, which is $105.79. $$\text{Sales Tax}=\text{Cost}\times \text{Sales Tax Rate}=105.79\times 0.09=9.4771$$ Rounding to two decimal places: $$\text{Sales Tax}\approx 9.48$$

2. Calculate the total cost including tax.
   Add the sales tax to the original cost: $$\text{Total with Tax}=\text{Cost}+\text{Sales Tax}=105.79+9.48=115.27$$

3. Calculate the tip.
   The tip is based only on the pre-tax amount of $105.79: $$\text{Tip}=\text{Cost}\times \text{Tip Rate}=105.79\times 0.20=21.158$$ Rounding to two decimal places: $$\text{Tip}\approx 21.16$$

4. Calculate the total amount spent.
   Add the tip to the total cost with tax: $$\text{Total Amount}=\text{Total with Tax}+\text{Tip}=115.27+21.16=136.43$$

Final Answer: The total amount Jesse will spend, including tax and tip, is $136.43.