Question

The following list shows the items and prices for a restaurant order. Calculate the total amount if there is a 7% tax and the customer leaves a 20% gratuity.
1 appetizer: $7.39
2 entrees: $16.99 each
1 dessert: $5.29
2 drinks: $2.30 each
a.
$65.82
b.
$65.10
c.
$54.85
d.
$40.60

Answer 1

First find the subtotal:
7.39 + 2(16.99) + 5.29 + 2(2.30) = 51.26

Tax (7%): 0.07 × 51.26 = 3.59 (rounded)
Total after tax: 51.26 + 3.59 = 54.85

Gratuity (20% of subtotal): 0.20 × 51.26 = 10.25

Final total: 54.85 + 10.25 = 65.10

Answer: b. $65.10

(If the 20% gratuity were taken on the post‑tax amount instead, the total would be $65.82.)