Question

HURRRRRYYYYY The Harringtons go to a restaurant for lunch and their bill is $86.20. After 6.5% tax and tip, they pay a total of $100. If the Harringtons were exceptionally pleased with their service, decide if their tip reflected this. Explain your reasoning.

Answer 1

No, the Harringtons tip does not reflect how they felt about their service. The tax on their bill is (0.065)(86.20) = $5.60, which means that their total before tip is 86.20 + 5.60 = $91.80. Subtracting this from the $100, leaves $8.20 for the tip, which is less than 10%. Based on the average range of tipping being 10% - 20% with 20% at the high end, their tip seems to reflect that they were not happy with their service.

Explanation:

^^^^

Answer 2

Given that total bill amount = $86.20

Tax = 6.5%

So total amount Harringtons should pay = 86.20 + 6.5% of 86.20

= 86.20 + 0.065*86.20

= 86.20 + 5.603

= 91.803

Given that they paid a total of $100 including the tip so tip can be found by subtracting total bill amount from paid amount

tip = 100 - 91.803

tip = 8.197

If we compare the bill amount $86.20 with the tip amount $8.197. We see that tip is not very big as compared to bill.

So according to me, the tip value doesn't truely reflect that Harringtons were exceptionally pleased with their service.