Final answer:
To calculate the total amount paid including sales tax and tip, add 4% of the item's cost as tax, then calculate a 20% tip on the pre-tax amount, and add both to the original cost.
Step-by-step explanation:
To calculate the total amount paid, including sales tax and tip, you need to first add the sales tax to the cost of the item and then calculate the tip on the pre-tax amount. Here's how you can do it:
Calculate the sales tax: Take the cost of the item and multiply it by the sales tax rate. If the cost of the item is $100, then the sales tax at 4% would be $100 * 0.04 = $4.
Add the sales tax to the cost of the item: $100 + $4 = $104.
Calculate the tip: Using the original cost (pre-tax), multiply by the tip rate. A tip of 20% on $100 would be $100 * 0.20 = $20.
Add the tip to the total cost with tax: $104 (subtotal with tax) + $20 (tip) = $124 (total amount paid).
Note that the tip is calculated on the pre-tax amount, as per usual tipping etiquette.
The complete question is: Calculating expected sliding scale commission is: