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# 6.18: Prices Involving Sales Tax

Difficulty Level: At Grade Created by: CK-12
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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 $\ 30 = \ 3$

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: $\3.00 - \3.50$

$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 $\2.50 - \3.00$ . ### Guided Practice Here is one for you to try on your own. Estimate a 20% tip on a restaurant bill of$38.95.

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 $\7.50 - \8.00$ .

### Video Review

Here is a video for review.

### Explore More

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

## Date Created:

Dec 21, 2012

Dec 29, 2014
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