Jesse buys his cowerkers lunch from the local steakhouse. The food costs $105.79, and the sales tax rate 9%. Jesse wants to leave a 20% tip based on the pre-tax. how much will the total be, including tax and tip?

1 answer

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

  1. Calculate the sales tax:

    • Sales tax = Cost of food × Sales tax rate
    • Sales tax = $105.79 × 0.09 = $9.4781 (approximately $9.48 when rounded to two decimal places)
  2. Calculate the tip:

    • Tip = Cost of food × Tip rate
    • Tip = $105.79 × 0.20 = $21.158 (approximately $21.16 when rounded to two decimal places)
  3. Calculate the total cost:

    • Total cost = Cost of food + Sales tax + Tip
    • Total cost = $105.79 + $9.48 + $21.16 = $136.43

Thus, the total amount Jesse will pay, including tax and tip, is $136.43.