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 amount Jesse will spend, we will follow these steps:

1. Calculate the sales tax.
   The sales tax is calculated based on the food cost, which is $105.79. \[ \text{Sales Tax} = \text{Cost} \times \text{Sales Tax Rate} = 105.79 \times 0.09 = 9.4771 \] Rounding to two decimal places: \[ \text{Sales Tax} \approx 9.48 \]

2. Calculate the total cost including tax.
   Add the sales tax to the original cost: \[ \text{Total with Tax} = \text{Cost} + \text{Sales Tax} = 105.79 + 9.48 = 115.27 \]

3. Calculate the tip.
   The tip is based only on the pre-tax amount of $105.79: \[ \text{Tip} = \text{Cost} \times \text{Tip Rate} = 105.79 \times 0.20 = 21.158 \] Rounding to two decimal places: \[ \text{Tip} \approx 21.16 \]

4. Calculate the total amount spent.
   Add the tip to the total cost with tax: \[ \text{Total Amount} = \text{Total with Tax} + \text{Tip} = 115.27 + 21.16 = 136.43 \]

Final Answer: The total amount Jesse will spend, including tax and tip, is $136.43.