The cost of lunch is $45.00. Tax is 8.75 percent. Tip is 20 percent. What is the total amount?

Answer 1

Cost of lunch = $45
Cost of tax = 8.75% of 45 = 0.0875 * 45 = $3.93
Cost of tip = 20% of 45 = 0.2 * 45 = $9

Sum it up for the total amount spent.

Answer 2

Is you tip before tax, as it should be ?

amount = 45(1.0875) + 45(.2) = ....

If you tip after tax ...
amount = 45(1.0875)(1.2) = .....