Question

Celeste has $40 that she plans on using to pay for lunch with a friend, including the tip. She always tips 16%. What is the maximum amount Celeste can spend on the food, so she can be sure to have enough money remaining to cover the tip? Round to the nearest cent.

Answer 1

$34.48 would be the maximum amount she could pay for lunch.

Answer 2

Total amount Celeste had initially to pay for lunch = $40

Percentage of money she pays as tips = 16%

Now let us find amount she pays as tip:

Finding 16% of 40,

0.16 *40 = 6.4

So Celeste pays $6.4 as tip.

Now let us find what is left with Celeste after paying tip.

Amount left for lunch = Amount she had initially - Amount paid as tip

Amount for lunch = 40 - 6.4 = 33.6

Rounding off 33.6 we have 34.

Answer : Celeste can spend 34 dollars on lunch.