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

Answer 1

To calculate the total cost including tax and tip, we first need to calculate the tax amount, then the tip amount based on the pre-tax total, and then sum everything up.

1. Calculate the tax amount:
Tax = Cost of food x Tax rate
Tax = $105.79 x 9%
Tax = $105.79 x 0.09
Tax = $9.5211

We generally round the tax to the nearest cent, so rounding $9.5211 to the nearest cent gives us:
Tax = $9.52

2. Calculate the tip amount (based on the pre-tax amount):
Tip = Cost of food x Tip percentage
Tip = $105.79 x 20%
Tip = $105.79 x 0.20
Tip = $21.158

Again, we round the tip to the nearest cent:
Tip = $21.16

3. Calculate the total cost (food cost + tax + tip):
Total = Cost of food + Tax + Tip
Total = $105.79 + $9.52 + $21.16
Total = $136.47

So, the total cost including tax and tip would be $136.47.