Question

Mrs. Torres goes out of town on a business trip. She spends 3 nights in a hotel at a charge of $80 per night. She pays 9% tax on the room and tips the maid service 10% of the room charge. Mrs. Torres also has meals worth $109.30 before tax and she tips 15%. If the total cost of her trip is $420.04, approximately what tax rate does Mrs. Torres pay on her meals?
a.
6%
b.
7%
c.
8%
d.
9%

Answer 1

Total cost breakdown:
- Hotel: 3 × $80 = $240
- Hotel tax: 9% of $240 = $21.60
- Maid tip: 10% of $240 = $24.00
- Meals before tax: $109.30
- Meal tip: 15% of $109.30 = $16.395

Sum of known items = 240 + 21.60 + 24 + 109.30 + 16.395 = $411.295.
Let r = meal tax rate. Then total = 411.295 + 109.30·r = 420.04.
So 109.30·r = 420.04 − 411.295 = 8.745 → r ≈ 8.745/109.30 ≈ 0.08 = 8%.

Answer: c. 8%