Jesse buys his coworkers lunch from the local steakhouse. The food costs $105.79, and the 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?(1 point) ..

1 answer

To calculate the total amount Jesse needs to pay, we'll follow these steps:

  1. Calculate the sales tax.
  2. Calculate the tip based on the pre-tax amount.
  3. Add the pre-tax amount, sales tax, and tip together to find the total.

Step 1: Calculate the sales tax.

  • The food costs: $105.79
  • Sales tax rate: 9%

Sales Tax = Cost × Sales Tax Rate
Sales Tax = $105.79 × 0.09 = $9.4781 (approximately $9.48 when rounded to two decimal places)

Step 2: Calculate the tip based on the pre-tax amount.

  • The pre-tax amount is $105.79.
  • Tip rate: 20%

Tip = Pre-Tax Cost × Tip Rate
Tip = $105.79 × 0.20 = $21.158 (approximately $21.16 when rounded to two decimal places)

Step 3: Calculate the total amount. Total = Pre-Tax Cost + Sales Tax + Tip
Total = $105.79 + $9.48 + $21.16
Total = $136.43

Therefore, the total amount including tax and tip is $136.43.