Question

Suppose you buy lunch for $15.40 that includes a 8% sales tax. How much did the restaurant charge you for the lunch (excluding any tax) and how much does the restaurant owe for sales tax?a. $16.10 for lunch and $1.19 for sales tax.b. $14.81 for lunch and $1.29 for sales tax.c. $16.10 for lunch and $1.29 for sales tax.d. $14.91 for lunch and $1.19 for sales tax.

Answer 1

Answer: See explanation

Explanation:

Based on the scenario in the question, the amount that the restaurant charge for the lunch excluding any tax will be calculated as:

= $15.40 × 100/(100 + 8)

= $15.40 × 100/108

= $1540/108

= $14.26

Sales tax will be:

= $15.40 × 8%

= $15.40 × 8/100

= $15.40 × 0.08

= $1.23