Determine total price of the dinner including tax and tip.

Question

1. sailors platter $7.95
2. aztec chicken $6.95
3. crab wontons $6.95
4. 3 raspberry lemonades $1.65 each

sales tax of 5.25%

tip of 15%

Answer 1

Tax and Tip are percent increases. Calculating tip depends on whether you will tip based upon the subtotal or based upon the subtotal + tax. You would never pay tax on the subtotal + tip sum. So say you are feeling generous and will tip on the after-tax bill. Then

[[7.95 + 6.95 + 6.95 + 3(1.65)](1.0525)](1.15) = 32.44, the grand total.

If you're like me, you'll tip on the before-tax amount:

[7.95 + 6.95 + 6.95 + 3(1.65)](1.15) + [7.95 + 6.95 + 6.95 + 3(1.65)](0.0525) = 32.23.

Some helpful formulas:

Percent change = (difference/original)*100

Original*(1 + or - (% change)/100) = New