# 6.18: Prices Involving Sales Tax

**Basic**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?

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

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What is a tip?
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A
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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
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estimate
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the amount of a tip.

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Follow these steps to estimate a 15% tip
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Step 1: Round the total bill to the nearest whole dollar amount.
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Step 2: Find 10% of this amount by moving the decimal point one place to the left.
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Step 3: Find half of the amount you found in Step 2. This will give you 5% of the total cost.
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Step 4: Add the 10% amount and the 5% amount together.
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Take a few minutes to write these steps in your notebook.
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Now let’s apply these steps to a few situations.

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

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Step 1: Round $29.75 to $30.
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Step 2: 10% of
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Step 3: Half of
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Step 4:
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A 15% tip on a meal whose cost is $29.75 is about $4.50.
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Estimate a 20% tip on a meal whose cost is $54.15.

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Since the tip is about 20%, you can find 10% and then double it.
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Step 1: Round $54.15 to $54.
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Step 2: 10% of
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Step 3: 20% of
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A 20% tip on a meal whose cost is $54.15 is about $10.80.
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Estimate a 15% tip for each bill. Provide a range in your answer.

#### Example A

$29.00

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Solution:
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#### Example B

$16.00

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Solution:
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#### Example C

$55.00

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Solution:
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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>.

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A reasonable tip would be between
.
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### 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.

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Answer
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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 .

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This is our answer.
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### 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

### Image Attributions

## Description

## Learning Objectives

Here you'll learn to estimate appropriate tips.