Question

You went to lunch at Macayo's. Your bill was $37.24. The tax on the bill was 6.8%. You decided to leave a 15% tip after taxes. What was the total cost of the bill?

a) $42.39
b) $41.50
c) $39.77
d) $43.01

Answer 1

To find the total cost of the bill at Macayo's, we calculate the tax by multiplying the tax rate by the bill, then calculate the tip by multiplying the tip percentage by the subtotal (inclusive of tax). After adding both tax and tip to the original bill, we find that the total cost is $45.73, which is not one of the provided options.

Step-by-step explanation:

The question involves calculating the total cost of a bill by adding tax and tip. First, to find the tax on the bill, we convert the tax percentage to a decimal by dividing by 100 and multiply it by the original bill:

0.068 × $37.24 = $2.53 approximately (rounded to the nearest cent)

Now, add the tax to the original bill to get the subtotal before the tip: $37.24 + $2.53 = $39.77.

Next, to find the 15% tip after taxes, we again convert the percentage to a decimal and multiply it by the subtotal (including tax): 0.15 × 39.77 = $5.96 approximately (rounded to the nearest cent).

Finally, to find the total cost of the bill including tax and tip, we add the tip to the subtotal: $39.77 + $5.96 = $45.73.Therefore, none of the options provided (a), (b), (c), or (d) are correct, as the total cost is $45.73.