Question

The price of dinner was $24.80. The sales tax was 8%. The server was given a 15% tip calculated after tax. What was the total cost of the meal?

A. $30.68
B. $29.70
C. $31.38
D. $33.14

Answer 1

To find the total cost of the meal after sales tax and tip, multiply the meal cost by the sales tax rate, add that to the original meal cost for the post-tax total, then find the tip based on the post-tax total, and finally add the tip to the post-tax total. The correct total comes to $30.80.

Step-by-step explanation:

The total cost of the meal can be calculated by first finding the sales tax, then adding it to the original price to find the total after tax, and finally calculating the tip based on the total after tax.

1. Calculate the sales tax: $24.80 × 0.08 = $1.98.
2. Add the sales tax to the original price to get the total after tax: $24.80 + $1.98 = $26.78.
3. Calculate the 15% tip on the total after tax: $26.78 × 0.15 = $4.02.
4. Add the tip to the total after tax to find the grand total: $26.78 + $4.02 = $30.80.

Therefore, the grand total for the meal, including sales tax and tip, is $30.80, which is the answer closest to but not exactly matching any of the options provided.