Question

Six friends go to lunch. They plan to spilt the bill evenly and then they plan to leave a 20% tip. The bill comes out to $55.50. The sales tax is 7%. How much will each person pay? (HINT: Don't tip on tax!)
A. $18.87
B. $13.99
C. $11.75
D. $11.66

Answer 1

First, you must find the tip. Multiply 55.50 by 0.2 (the decimal form of 20%). 55.50*.2=11.10. Next, find the sales tax. You don't pay tip on tax as the hint declares, but you also don't pay tax on the tip. Therefore, you must find 7% of 55.50 by multiplying 55.50 by 0.07 (the decimal form of 7%). 55.50*.07=3.885. You don't want to round until the very end, so we leave that in full form for now. Finally, add all your expenses: 55.50+11.10+3.885=70.485. Now to figure out how much each person will pay. There are six people paying, so 70.485/6= 11.7475. Finally, round to the nearest hundredth, otherwise known as the nearest cent, to get the answer of $11.75, or C.