Question

What is the total cost of a $23 pizza, including a 6.5%
6.5
%
sales tax and a 15%
15
%
tip? Calculate the tip using the price of the pizza plus sales tax. Round the sale tax and tip amounts to the nearest hundredth.

Answer 1

To calculate the total cost of the pizza, including sales tax and tip, follow these steps:

1. **Calculate the sales tax**:
- Sales tax rate = 6.5%
- Cost of the pizza = $23.00
- Sales tax = \( 23 \times 0.065 = 1.495 \)
- Rounded to the nearest hundredth: Sales tax = **$1.50**

2. **Calculate the price of the pizza including sales tax**:
- Price with sales tax = Cost of pizza + Sales tax
- Price with sales tax = \( 23 + 1.50 = 24.50 \)

3. **Calculate the tip**:
- Tip rate = 15%
- Tip = \( 24.50 \times 0.15 = 3.675 \)
- Rounded to the nearest hundredth: Tip = **$3.68**

4. **Calculate the total cost**:
- Total cost = Price with sales tax + Tip
- Total cost = \( 24.50 + 3.68 = 28.18 \)

Therefore, the total cost of the pizza including sales tax and tip is **$28.18**.