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Total Bill Including Tip and Tax

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Total Bill Including Tip and Tax

Have you ever tried to calculate tips and taxes after going out to eat?

Taylor and her Dad went out to a restaurant for dinner. It had been a long day at the candy store, and they were both hungry. The cost of the meal was $25.75.

Taylor and her Dad began to figure out the total bill given a 7% sales tax and a 15% tip.

Do you know how to do this? Can you figure out the total bill including tax and tip?

This Concept will teach you how to find total bills involving tips and taxes. Then you can finish this problem at the end of the Concept.

Guidance

You just finished figuring out a tip. When you calculate the tip, then you add this amount back to the total of the bill for the final cost of the meal. Sometimes, the tip is left in cash on the table. When this happens, you don’t have to add it to the price of the meal. However, when using a credit card, you have to add the tip to the total to be sure that the server receives his/her tip.

What about taxes?

Taxes are monies that are collected by the government to help pay for services such as schools, libraries, roads, and police and fire protection. A sales tax is a tax bought on something in a store. The rate of sales tax is given as a percent. You can find the amount of sales tax by using the following formula:

Amount of sales tax = price \times rate of sales tax

After you calculate the amount of a tax using the percentage and the formula, you have to add it to an original amount. With sales tax, this is especially important. Let’s look at a few examples.

Emily bought a jacket for $85. If the sales tax is 7.5%, find the total cost of the jacket.

First find the amount of sales tax.

7.5% of \$ 85 = 0.075 \times \$ 85 = \$ 6.375

You need to round $6.375 to the nearest penny, which is $6.38.

Add the price of the jacket and the sales tax.

\$ 85 + \$ 6.38 = \$ 91.38

The total cost of the jacket is $91.38.

Mr. and Mrs. Green and their four children went out to dinner. The cost of the meal was $72. The restaurant added a tip of 18% to the bill. What was the total cost of the dinner?

First find the amount of the tip.

18% of \$ 72 = 0.18 \times \$ 72 = \$ 12.96

Add the cost of the meal and the tip.

\$ 72 + \$ 12.96 = \$ 84.96

The total cost of the dinner was $84.96.

Find the total amount of each bill.

Example A

5% sales tax on a $65.00 item.

Solution: $68.25

Example B

20% tip on a bill of $30.00

Solution: $36.00

Example C

10% sales tax on a $150.00 item.

Solution: $165.00

Here is the original problem once again.

Taylor and her Dad went out to a restaurant for dinner. It had been a long day at the candy store, and they were both hungry. The cost of the meal was $25.75.

Taylor and her Dad began to figure out the total bill given a 7% sales tax and a 15% tip.

Do you know how to do this? Can you figure out the total bill including tax and tip?

First, let's figure out the sales tax. To do this, we convert the percent to a decimal and multiply by the total cost of the meal.

.07 \times 25.75 = 1.80

Next, we figure out the tip. Convert the percent to a decimal and multiply by the cost of the meal.

.15 \times 25.75 = 3.86

Now we add it all up.

25.75 + 1.80 + 3.86 = 31.41

Their total bill was $31.41 including the tip.

Vocabulary

Here are the vocabulary words in this Concept.

Tip
a percent that is added to a price or given for a service.
Estimate
an approximate calculation. It is not exact.
Taxes
a percent added to a bill as in a sales tax. It is an amount of money collected by the government.

Guided Practice

Here is one for you to try on your own.

Brandon bought a T-shirt for $8.99 and a pair of shorts for $11.99. If the rate of sales tax is 7%, how much did he spend?

Answer

First find the total cost of the items purchased.

\$ 8.99 + \$ 11.99 = \$ 20.98

Next find the amount of sales tax. First, convert the percent to a decimal and multiply by the total cost.

20.98 \times .07 = 1.47

Notice that we rounded up to 1.47.

Now add this to the cost of the items.

20.98 + 1.47 = $22.45

This is the answer.

Video Review

Here is a video for review.

- This is a James Sousa video on calculating a tip.

Practice

Directions: Calculate the total amount paid including sales tax if the sales tax is 4% and there is a tip of 20%.

1. Total: $56.75

2. Total: $43.25

3. Total: $65.00

4. Total: $25.50

5. Total: $18.75

6. Total: $59.00

7. Total: $21.50

8. Total: $44.50

9. Total: $12.50

10. Total: $43.00

11. Total: $89.50

12. Total: $99.35

13. Total: $2,35.75

14. Total: $300.50

15. Total: $678.25

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