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# 6.18: Prices Involving Sales Tax

Difficulty Level: At Grade Created by: CK-12
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Practice Prices Involving Sales Tax

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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\begin{align*}\ 30 = \ 3\end{align*}

Step 3: Half of $3=$1.50\begin{align*}\ 3 = \ 1.50\end{align*}

Step 4: $3+$1.50=4.50\begin{align*}\ 3 + \ 1.50 = \ 4.50\end{align*} A 15% tip on a meal whose cost is29.75 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\begin{align*}\ 54 = \ 5.40\end{align*}

Step 3: 20% of $5.40=2×$5.40=10.80\begin{align*}\ 5.40 = 2 \times \ 5.40 = \ 10.80\end{align*} A 20% tip on a meal whose cost is54.15 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\begin{align*}3.00 - 3.50\end{align*}

$16.00 Solution:$2.002.50\begin{align*}2.00 -2.50\end{align*} #### Example C55.00

Solution:$8.00$8.50\begin{align*}8.00 - 8.50\end{align*}

Here is the original problem once again.

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\begin{align*}3.85\end{align*}. Now 20% is double that. We can say that an estimate of a 20% tip is in a range from7.508.00\begin{align*}7.50 - 8.00\end{align*}. This is our answer. ### Video Review Here is a video for review. ### Practice Directions:Estimate a tip of 20% for each amount. 1. A tip on15.00

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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### Vocabulary Language: English

Estimate

To estimate is to find an approximate answer that is reasonable or makes sense given the problem.

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.

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Date Created:
Dec 21, 2012
Last Modified:
Jul 06, 2016
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