3 people go out to eat. The total bill is $65.40, and there is an additional 9% sales tax on the bill. They also want to leavee a 20% tip.

Question

How much should they leave for the tip? What would be the final bill including tax and tip? Please provide work.

Answer 1

The tax is 9% of $65.40

The tip is 20% of $65.40

 

Tax = 0.09(65.40) = ?

Tip = 0.20(65.40) = ?

 

For the total add up 65.40 plus the tax plus the tip.

 

I am going to assume you can do the arithmetic on your own.

 

This all assumes you know that you do not tip on the tax. 

- Although you can if you want - you would just be extra generous.

The tax is not a service the wait staff provided to you.

You are supposed to tip on the value of the meal or service provided to you. 

(The subtotal before tax and other things).

You do not pay tax on your tip -and- you do not tip on the tax.

Those are both add-ons independent of each other and calculated on the base amount.

(Even though the "suggested" tips listed on bills often do "suggest" you tip on the total including tax - that is not the right way to do it. Although you can be that extra generous if you want the staff would love it.)