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 amount, in dollars, of the sales tax?

What was the total amount the group paid, including tax and tip?

Answer 1

Sales Tax = $3.00

The total amount paid by the group was $48.15

The amount of the sales tax can be calculated by multiplying the pre-tax bill of $37.50 by the sales tax rate of 8%:

Sales tax = $37.50 * 8% = $3.00

The total amount paid including tax and tip can be calculated by adding the amount of the sales tax to the pre-tax bill and then calculating the tip on the new total:

Total = $37.50 + $3.00 + ($37.50 + $3.00) * 18% = $37.50 + $3.00 + $7.65 = $48.15

So the total amount paid by the group was $48.15.