Andrew and Kate have 30 dollars to spend on dinner, tax, and gratuity at Mo’s Restaurant. Tax is 6 percent , and they will give a 15 percent tip on the total bill after taxes. Their dinner costs 21 point 0 0 dollars Which statement correctly explains whether Andrew and Kate have enough money to pay their bill?
Answer
A
Yes. They have enough to pay their bill: 21 dollars times 1 point 0 6 is equal to 22 point 2 6 dollars and 22 point 2 6 dollars times 1 point 1 5 is equal to 25 point 6 0 dollars .
B
No. They do not have enough to pay their bill: 21 dollars times 1 point 0 6 is equal to 22 point 2 6 dollars and 22 point 2 6 dollars times 1 point 1 5 is equal to 25 point 6 0 dollars .
C
No. They do not have enough to pay their bill: 30 dollars times 1 point 0 6 is equal to 31 point 8 0 dollars and 31 point 8 0 dollars times 1 point 1 5 is equal to 36 point 5 7 dollars .
D
Yes. They have enough to pay their bill: 30 dollars times 1 point 0 6 is equal to 31 point 8 0 dollars and 31 point 8 0 dollars times 1 point 1 5 is equal to 36 point 5 7 dollars .
Explanation
First add 6% tax to the $21 dinner cost: $21 × 1.06 = $22.26. Then add the 15% tip to the after-tax total: $22.26 × 1.15 = $25.60 (rounded to the nearest cent). Since $25.60 is less than their $30 budget, they have enough money; choice A gives the correct calculation and conclusion.
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