Question

The Rodriguez family went to dinner at Pasta Palace. Mr. Rodriguez ordered a meal for $6.25; Mrs. R ordered a meal for $7.50; the 2 children ordered individual pizzas for $4.99 each. The sales tax rate was 7.25% and they left a 15% tip. How much was the total bill?

Answer 1

Given:
Mr. Rodriguez :                          6.25
Mrs. R                                        7.50
2 children @ 4.99 each             9.98
Subtotal:                                 23.73
Sales tax 7.25%                        1.72        *23.73 x 7.25%
Total tip 15%                             3.56        *23.73 x 15%
Grand total                            $29.01


Tips should be applied to pre-tax amount not post-tax. However, some companies compute tip based on post-tax amount. This means that the tip you are paying is computed based on the total amount of the meal as well as the sales tax you paid for the meal.