Jesse buys his coworkers lunch from a local steakhouse. The food costs $105.70, and sales tax rate is 9%. Jesse wants to leave a 20% tip based on the pre-tax amount. How much will the total be , including tax and tip?

Answer 1

To calculate the total amount that Jesse will spend, we need to follow these steps:

1. Calculate the sales tax:

   • Sales tax rate: 9%
   • Pre-tax amount (cost of food): $105.70
   • Tax = Pre-tax amount × Sales tax rate
   • Tax = $105.70 × 0.09 = $9.513

   For simplicity, we can round this to $9.51 (if we assume we're rounding to two decimal places).

2. Calculate the total cost including tax:

   • Total cost with tax = Pre-tax amount + Tax
   • Total cost with tax = $105.70 + $9.51 = $115.21

3. Calculate the tip based on the pre-tax amount:

   • Tip rate: 20%
   • Tip = Pre-tax amount × Tip rate
   • Tip = $105.70 × 0.20 = $21.14

4. Calculate the total amount including tip:

   • Total amount = Total cost with tax + Tip
   • Total amount = $115.21 + $21.14 = $136.35

Therefore, the total amount Jesse will pay, including tax and tip, is $136.35.