Final answer:
To find the total amount paid including sales tax and tip, calculate the sales tax based on the meal total, add it to get a new subtotal, then calculate the tip based on the subtotal and add to find the final total.
Step-by-step explanation:
When calculating the total amount paid, including sales tax and tip, you must first calculate the sales tax by multiplying the total cost of the food by the sales tax percentage. Then, add this amount to the original total to find the new subtotal. Next, calculate the tip by multiplying the subtotal by the tip percentage. Finally, add the tip amount to the subtotal to find the final amount paid.
Example 1
Jerod's restaurant bill before tax and tip is $47.50. The sales tax rate is 6%, which means the sales tax amount would be $47.50 x 0.06 = $2.85. Adding sales tax to the original total gives us a new subtotal of $47.50 + $2.85 = $50.35. Assuming Jerod decides to leave a 20% tip, the tip amount would be $50.35 x 0.20 = $10.07. Thus, the total amount Jerod would pay using a credit card, including sales tax and tip, would be $50.35 + $10.07 = $60.42.