Question

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**.