Question

You have lunch at an Italian restaurant. The cost of lunch before tax is

$12.50. The sales tax rate is 7%. You leave a 20% tip on the pre-tax amount.
What is the total amount you spend on lunch, including tax and tip?

Answer 1

Your total comes out to be $15.88

Answer 2

7/100 = 0.07

0.07 * 12.5 = 0.88

20/100 = 0.2

0.2 * 12.5 = 2.5

2.5 + 0.88 = 3.38

3.38 + 12.50 = 15.88

You spend a total of $15.88.