Question

Jamal goes out to lunch. The bill, before tax and tip, was $12.50. A sales tax of 5%

was added on. Jamal tipped 20% on the amount after the sales tax was added. How
much tip did he leave? Round to the nearest cent.

Answer 1

The cost of the tip is $2.63

Explanation:

First, we need to find the sales tax and 5% of 12.5 = 0.625

After that we need to add the tax to the original price which is 0.625 + 12.50 = $13.125

From that price we need to find 20% of it which is 0.20 x 13.125 = 2.625

Now we need to round that to the nearest cent which is 2.63

So, he paid $2.63 in tips.

Hope this helps :)