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Prices Involving Sales Tax

Have you ever had to calculate a tip in a restaurant?

Sasha and Keith went out for lunch. Their total bill was $16.60. Both Sasha and Keith were puzzled when it came to calculating the tip. They decided to give the waiter a 15% tip.

Do you know how to calculate this?

What range would be an acceptable tip?

This Concept is about estimate appropriate tips. You will learn how to tackle this problem.

Guidance

When you go to a restaurant, it is customary to tip the server. If you have help at the airport, it is customary to tip the server. If you have someone carry your bags at a hotel, it is customary to tip the bellhop.

What is a tip?

A tip is an amount of money that is given to a worker such as a waiter or waitress who performs a service for you. A common tip amount is 15% of the cost of the meal or other service. Since you don’t usually calculate a tip exactly, we can estimate the amount of a tip.

Follow these steps to estimate a 15% tip

Step 1: Round the total bill to the nearest whole dollar amount.

Step 2: Find 10% of this amount by moving the decimal point one place to the left.

Step 3: Find half of the amount you found in Step 2. This will give you 5% of the total cost.

Step 4: Add the 10% amount and the 5% amount together.

Take a few minutes to write these steps in your notebook.

Now let’s apply these steps to a few situations.

Estimate a 15% tip on a meal whose cost is $29.75.

Step 1: Round $29.75 to $30.

Step 2: 10% of \$ 30 = \$ 3

Step 3: Half of \$ 3 = \$ 1.50

Step 4: \$ 3 + \$ 1.50 = \$ 4.50

A 15% tip on a meal whose cost is $29.75 is about $4.50.

Estimate a 20% tip on a meal whose cost is $54.15.

Since the tip is about 20%, you can find 10% and then double it.

Step 1: Round $54.15 to $54.

Step 2: 10% of \$ 54 = \$ 5.40

Step 3: 20% of \$ 5.40 = 2 \times \$ 5.40 = \$ 10.80

A 20% tip on a meal whose cost is $54.15 is about $10.80.

Estimate a 15% tip for each bill. Provide a range in your answer.

Example A

$29.00

Solution: \$3.00 - \$3.50

Example B

$16.00

Solution: \$2.00 -\$2.50

Example C

$55.00

Solution: \$8.00 - \$8.50

Here is the original problem once again.

Sasha and Keith went out for lunch. Their total bill was $16.60. Both Sasha and Keith were puzzled when it came to calculating the tip. They decided to give the waiter a 15% tip.

Do you know how to calculate this?

What range would be an acceptable tip?

To figure this out, first let's round up.

16.60 becomes 17.00

Now take 10% of that figure.

1.70

Half of that is .85 .

If we add the two together, we get an estimate of 2.55 .

A reasonable tip would be between \$2.50 - \$3.00 .

Vocabulary

Tip
A tip is an amount of money given to a person (like a server) who has performed a service. Tips for servers are commonly 15 – 20% of the total bill.
Estimate
To estimate is to find an approximate answer that is reasonable or makes sense given the problem.

Guided Practice

Here is one for you to try on your own.

Estimate a 20% tip on a restaurant bill of $38.95.

Answer

You can start by thinking about 10% of this bill. Since that involves simply moving the decimal point, we can say that the estimate of 10% is \$3.85 .

Now 20% is double that.

We can say that an estimate of a 20% tip is in a range from \$7.50 - \$8.00 .

This is our answer.

Video Review

Here is a video for review.

This is a James Sousa video on calculating a tip.

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Directions: Estimate a tip of 20% for each amount.

1. A tip on $15.00

2. A tip on $28.00

3. A tip on $25.00

4. A tip on $35.00

5. A tip on $45.00

6. A tip on $50.00

7. A tip on $90.00

8. A tip on $120.00

9. A tip on $125.00

10. A tip on $110.50

11. A tip on $130.75

12. A tip on $135.50

13. A tip on $98.78

14. A tip on $89.67

15. A tip on $100.20

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