Question

At the restaurant, the cost of the meal before tax was $40. The tax is 8.5%, and Sheri wants to leave at least an 18% tip. Explain how to approximate the total cost of the meal.

Answer 1

Solution :-

given that,

→ Cost of meal before tax = $ 40

and,

→ Tax = 8.5%

So,

→ Total tax paid = 8.5% of cost of meal = (40 * 8.5)/100 = $ 3.4

now,

→ Tip = 18% of cost of meal = (18 * 40)/100 = $ 7.2

then,

→ Total cost of the meal = Cost of meal before tax + Total tax paid + Tip = 40 + 3.4 + 7.2 = $50.6 ≈ $51 (Ans.)

Shortcut :-

→ Total cost of the meal = Cost of meal * (100% + 8.5% tax + 18% tip) = 40(1 + 0.085 + 0.18) = 40 * 1.265 = $50.6 ≈ $51 (Ans.)