Jesse buys coworkers lunch from the local steakhouse. The food costs $105.79 and the sale tax rate is 9%. Jesse wants to leave a 20% tip based on the pre-tax amount. How many will the total be, including tax and tip?
To calculate the total cost including tax and tip, we first need to calculate the tax amount, then the tip amount based on the pre-tax total, and then sum everything up.
1. Calculate the tax amount:
Tax = Cost of food x Tax rate
Tax = $105.79 x 9%
Tax = $105.79 x 0.09
Tax = $9.5211
We generally round the tax to the nearest cent, so rounding $9.5211 to the nearest cent gives us:
Tax = $9.52
2. Calculate the tip amount (based on the pre-tax amount):
Tip = Cost of food x Tip percentage
Tip = $105.79 x 20%
Tip = $105.79 x 0.20
Tip = $21.158
Again, we round the tip to the nearest cent:
Tip = $21.16
3. Calculate the total cost (food cost + tax + tip):
Total = Cost of food + Tax + Tip
Total = $105.79 + $9.52 + $21.16
Total = $136.47
So, the total cost including tax and tip would be $136.47.