Question

A group of friends went to lunch. The bill, before sales tax and tip, was $37.50. A sales tax of 8% was added. The group then tipped 18% on the amount after the sales tax was added. What was the total amount the group paid, including tax and tip?

Answer 1

Hi there! The answer is $47.79

First we need to find the amount including tax. Therefore we must multiply by 1.08 (since we pay 100% + 8% = 108%). We find
$37.50 × 1.08 = $40.50

Now we add the tip to the amount of money including taxes. To do this we must multiply by 1.18 (since we pay 100% + 18% = 118%). We find
$40.50 × 1.18 = $47.79

Hence, the group pay a total amount of money of $47.79