Question

Julia's service charge at a beauty salon was $72.60, before tax. The sales tax rate was 8%. If she added 20% of the amount before tax as a tip, how much did she pay for the service at the salon?

Answer 1

Service charge for Julia at a beauty salon = $72.60
The rate of sales tax taken = 8%
Percentage of tips she added to the service charge before sales tax = 20%
Then amount of tips given by Julia = (20/100) * 72.60
                                                       = (1/5) * 72.60
                                                       = 14.52 dollars
Then the amount in total paid by Julia before adding service tax = (72.60 + 14.52) dollars
                                                                                                      = 87.12 dollars
Now the sales tax of 8% has to be calculated on the amount of $87.12.
Then
Amount of sales tax given by Julia = (8/100) * 87.12
                                                       = 696.96/100
                                                       = 6.969
                                                       = 6.97 dollars
So the total amount paid by Julia for the service at the salon = (87.12 + 6.97) dollars
                                                                                                 = 94.07 dollars
Julia paid a total of $94.07 for the service she received at the salon.