# 6.18: Prices Involving Sales Tax

**At Grade**Created by: CK-12

**Practice**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
**

**
Step 3: Half of
**

**
Step 4:
**

**
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
**

**
Step 3: 20% of
**

**
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:
**

#### Example B

$16.00

**
Solution:
**

#### Example C

$55.00

**
Solution:
**

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.

becomes

Now take 10% of that figure.

Half of that is .

If we add the two together, we get an estimate of </math>2.55</math>.

**
A reasonable tip would be between
.
**

### 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.

### 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 .

Now 20% is double that.

We can say that an estimate of a 20% tip is in a range from .

**
This is our answer.
**

### Video Review

Here is a video for review.

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

### Practice

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

Discount

When a product is discounted, the price is reduced. The discount is the difference between the original and reduced prices.Percent

Percent means out of 100. It is a quantity written with a % sign.Proportion

A proportion is an equation that shows two equivalent ratios.Sales Tax

Sales tax is a small percentage of the sales price of a purchase, collected to support government services.### Image Attributions

## Description

## Learning Objectives

Here you'll learn to estimate appropriate tips.