Vani goes out to lunch. The bill, before tax and tip, was $17.35. A sales tax of 7% was added on. Vani tipped 18% on the amount after the sales tax was added. How much was the sales tax? Round to the nearest cent.

1 answer

To find the amount of sales tax on the bill, we can follow these steps:

  1. Calculate the sales tax: The sales tax is calculated as 7% of the subtotal (the original bill).

    \[ \text{Sales Tax} = \text{Subtotal} \times \text{Sales Tax Rate} \] \[ \text{Sales Tax} = 17.35 \times 0.07 \] \[ \text{Sales Tax} = 1.2145 \]

    Rounding this to the nearest cent gives us:

    \[ \text{Sales Tax} \approx 1.21 \]

Thus, the sales tax is $1.21.