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For large parties at a certain restaurant, a tip of 20% is automatically included on the bill. select yes or no to show whether each of the following tip amounts are correct for a 20% gratuity on each subtotal. round to the nearest cent if necessary.

User Fanfan
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2 Answers

1 vote

Final answer:

To calculate the correct tip for a 20% gratuity, you multiply the subtotal by 0.20 and add the result to the original subtotal. For taxes and discretionary tips, calculate each separately and then add them to the subtotal to find the total amount paid.

Step-by-step explanation:

Calculating Tips and Total Bills

When a 20% gratuity is included for large parties at a restaurant, this percentage is applied to the subtotal of the bill to calculate the tip amount. To find the total amount with the 20% tip, you multiply the subtotal by 0.20 (20% converted to a decimal) and add it to the original subtotal.

For example, for a subtotal of $30.00:

  1. Convert 20% to a decimal: 0.20.
  2. Multiply the subtotal by the decimal tip rate: $30.00 × 0.20 = $6.00 (tip amount).
  3. Add the tip to the original subtotal to find the total amount: $30.00 + $6.00 = $36.00.


This is the total bill including the 20% tip.

If the subtotal is $47.50 and the sales tax is 6%, plus a discretionary tip is added:

  1. Calculate the sales tax: $47.50 × 0.06 = $2.85.
  2. Add the sales tax to the subtotal: $47.50 + $2.85 = $50.35.
  3. Add a 20% tip on the original subtotal: $47.50 × 0.20 = $9.50.
  4. Add the tip to the amount with sales tax: $50.35 + $9.50 = $59.85.


This is the total amount they will pay using a credit card, including sales tax and tip.

When calculating the total cost that includes both tip and tax, it's important to separate these calculations to ensure accuracy. In situations where the tip is paid separately in cash, it doesn't need to be added to the price paid through the register if using a credit card. However, if paying the tip by credit card, the final total must include this amount.

User Efkah
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2 votes

The only correct tip from the ones provided is for the first total. The other two are incorrect according to the 20% gratuity rule.

To determine whether each of the tip amounts is correct for a 20% gratuity on each subtotal, we'll calculate 20% of each total and compare it with the provided tip amount. If the calculated 20% tip matches the provided tip amount (after rounding to the nearest cent if necessary), we'll select "yes"; if not, we'll select "no".

The tip calculation for a 20% gratuity is done by multiplying the total amount by 0.20 (which is the decimal form of 20%).

Let's calculate the correct tips for the given totals.

For each subtotal, here are the correct tip amounts for a 20% gratuity, along with the evaluation of the given tip amounts:

1. For the subtotal of $248.50, the correct tip is $49.70. The given tip amount matches, so the answer is "Yes".

2. For the subtotal of $189.13, the correct tip is $37.83. The given tip amount does not match (given was $36.83), so the answer is "No".

3. For the subtotal of $164.78, the correct tip is $32.96. The given tip amount does not match (given was $33.96), so the answer is "No".

The only correct tip from the ones provided is for the first total. The other two are incorrect according to the 20% gratuity rule.

the complete Question is given below:

For large parties at a certain restaurant, a tip of 20% is automatically included on the bill. select yes or no to show whether each of the following tip amounts are correct for a 20% gratuity on each subtotal. round to the nearest cent if necessary.

For large parties at a certain restaurant, a tip of 20% is automatically included-example-1
User MacInnis
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