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 answer

To find the total amount Jesse will spend, we need to calculate the sales tax, the tip, and then add them to the pre-tax amount.

  1. Calculate the sales tax: \[ \text{Sales tax} = \text{Cost of food} \times \text{Sales tax rate} \] \[ \text{Sales tax} = 105.79 \times 0.09 = 9.4811 \] Rounding to two decimal places, the sales tax is: \[ \text{Sales tax} \approx 9.48 \]

  2. Calculate the tip based on the pre-tax amount: The pre-tax amount is \( 105.79 \). \[ \text{Tip} = \text{Cost of food} \times \text{Tip rate} \] \[ \text{Tip} = 105.79 \times 0.20 = 21.158 \] Rounding to two decimal places, the tip is: \[ \text{Tip} \approx 21.16 \]

  3. Calculate the total: The total amount will be the sum of the pre-tax cost, the sales tax, and the tip. \[ \text{Total} = \text{Cost of food} + \text{Sales tax} + \text{Tip} \] \[ \text{Total} = 105.79 + 9.48 + 21.16 = 136.43 \]

Thus, the total amount Jesse will spend, including tax and tip, is \(\boxed{136.43}\).