Question

Frank and 3 of his friends ate dinner at a restaurant. The bill came to $98.75 before tax. The tax rate is 6.5% and they decided to leave 20% tip. If they share the bill equally, how much will each person pay?

Answer 1

Either $41.64 per person or $42.07, depending on if they tip pre or post sales tax.

Explanation:

b=98.75

x=6.5/100=0.065

p=20/100=0.2

If tipping on taxed subtotal:

T=[(bx+b)p+(bx+b)]/3

T=[(98.75(0.065)+98.75)(0.2)+98.75(0.065)+98.75]/3

T=42.07 per person

If tipping on untaxed subtotal:

T=(bx+bp+b)/3

T=(98.75(0.065)+98.75(0.2)+98.75)/3

T=41.64 per person