What is the total cost of a $23 pizza, including a 6.5%

Question

6.5
%
sales tax and a 15%
15
%
tip? Calculate the tip using the price of the pizza plus sales tax. Round the sale tax and tip amounts to the nearest hundredth.

Answer 1

To calculate the total cost of the pizza, including sales tax and tip, follow these steps:

1. Calculate the sales tax:

   • Sales tax rate = 6.5%
   • Cost of the pizza = $23.00
   • Sales tax = \( 23 \times 0.065 = 1.495 \)
   • Rounded to the nearest hundredth: Sales tax = $1.50

2. Calculate the price of the pizza including sales tax:

   • Price with sales tax = Cost of pizza + Sales tax
   • Price with sales tax = \( 23 + 1.50 = 24.50 \)

3. Calculate the tip:

   • Tip rate = 15%
   • Tip = \( 24.50 \times 0.15 = 3.675 \)
   • Rounded to the nearest hundredth: Tip = $3.68

4. Calculate the total cost:

   • Total cost = Price with sales tax + Tip
   • Total cost = \( 24.50 + 3.68 = 28.18 \)

Therefore, the total cost of the pizza including sales tax and tip is $28.18.