Question

Question

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)

Answer 1

To calculate the total cost of the lunch including tax and tip, we can follow these steps:

1. Calculate the sales tax:
   Sales tax is calculated on the pre-tax amount (the cost of the food).
   Sales tax = Cost of food × Sales tax rate
   Sales tax = $105.79 × 0.09 = $9.4781
   Rounding this to two decimal places, we get:
   Sales tax ≈ $9.48

2. Calculate the total cost including tax:
   Total cost including tax = Cost of food + Sales tax
   Total cost including tax = $105.79 + $9.48 = $115.27

3. Calculate the tip based on the pre-tax amount:
   Tip = Cost of food × Tip rate
   Tip = $105.79 × 0.20 = $21.158
   Rounding this to two decimal places, we get:
   Tip ≈ $21.16

4. Calculate the final total including tip:
   Final total = Total cost including tax + Tip
   Final total = $115.27 + $21.16 = $136.43

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