Answers26.27 TCEC FINANCIAL LITTax and Gratuities

Tax and Gratuities Answers

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1
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Matthew bought 4 new compact discs at $16.99 each and a carrying case for $35.89. He paid % sales tax on his purchases. If Matthew paid $112.42 total, determine if he paid the correct amount.

Question illustration
A
Matthew paid $0.15 too little for his purchases.
B
Matthew paid $0.16 too much for his purchases.
C
Matthew paid $0.05 too much for his purchases.
D
Matthew paid the correct amount for his purchases.
2
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Rounded to the nearest thousandth, what is the decimal equivalent of %?

Question illustration
A
0.067
B
0.068
C
0.677
D
0.678
3

Clovis wants to make a surprise visit to his uncle who lives out of town. He purchases an airline ticket for $69. There is a 15% sales tax on the price of the airline ticket. In addition he must pay a baggage fee of $20. When he arrives at the airport, Clovis takes a taxi to his uncle's house which is 8 miles from the airport. The taxi fee is $2.50 per mile. If Clovis has spent a total of $123.35 for the airline ticket and taxi, at what percent of his fare did Clovis tip the taxi driver?

A
10%
B
15%
C
20%
D
25%
4

Say that you are about to make a major purchase and would like to save money on sales tax. Which of these is a viable way to reduce the amount you will pay on sales tax?

A
Sales tax is a tax like any other, so you can claim additional dependents and get a deduction on it.
B
Businesses are allowed to charge a 1% fee for automatically calculating sales tax for you, so you should calculate the sales tax out yourself.
C
Sales tax varies by state, so you can travel to a state with a lower tax rate and make your purchase there.
D
If you buy an item on credit, the credit bureau must pay the sales tax instead of you, so you should make your purchase using a credit card.
5

The Changs updated their bedroom by purchasing a new lamp for $89.95 and a comforter set for $239.99. They paid % sales tax on their purchases. If the Changs paid $351.72 total, determine if they paid the correct amount.

Question illustration
A
The Changs family paid $0.33 too much for their purchases.
B
The Changs family paid $0.99 too much for their purchases.
C
The Changs family paid $5.94 too much for their purchases.
D
The Changs family paid the correct amount for their purchases.
6

Zalia meets her friend at the science museum to see a special exhibition. The admission to the museum is $12.50 per person plus tax. Zalia pays for herself and her friend. They have lunch at the museum’s cafe. Zalia has a sandwich for $5.95, an apple for $1.25 and a drink for $1.69. She is charged tax and also tips her server 15%. If tax is 7.25%, how much did Zalia pay all total for her day at the science museum?

A
$41.43
B
$37.68
C
$36.35
D
$24.27
7

You have a restaurant bill of $46.32. If you are taxed % and decide to tip your server 20%, how much is your total?

Question illustration
A
$59.75
B
$59.05
C
$58.92
D
$58.87
8

The following list shows the items and prices for a restaurant order. Calculate the total amount if there is 7.5% tax and the customer leaves a 15% gratuity.1 appetizer: $8.992 entrees: $14.99 each1 entree: $12.993 drinks: $1.99 each

A
$70.96
B
$71.62
C
$75.31
D
$75.97
9

How can sales tax alter the size of the tip you leave at a restaurant?

A
A tip of a given percentage (such as a 20% tip) will be larger if calculated after tax than if calculated before tax.
B
The tip becomes part of the bill as a whole, so you have to increase the sales tax by a corresponding amount.
C
You do not have to double-calculate a percentage on any purchases, so you should pay for tax or a tip but not both.
D
A standard tip is 15% to 20% of the sales tax.
10

Using mental math, the approximate tip to leave for a bill of $81.79, if you tip 15% would be _____..

A
$8.20
B
$10.30
C
$12.30
D
$16.40
11

Tracy goes on a 3 day and night school band trip. There is no cost for travel and each band member only pays half the cost of the hotel room. However, each person is responsible for the cost of their own meals. His portion of the hotel bill is $49 per night and Tracy leaves a 10% tip for the maid service. Before tax, Tracy spends $32 per day on eating out plus 15% of this amount in tips. If Tracy spends a total of $280.74 on the band trip, what percent tax was Tracy charged on his food?

A
6%
B
7%
C
8%
D
9%
12

Say that you are about to make a major purchase and would like to save money on sales tax. Which of these is a viable way to reduce the amount you will pay on sales tax?

A
Sales tax is a tax like any other, so you can claim additional dependents and get a deduction on it.
B
Businesses are allowed to charge a 1% fee for automatically calculating sales tax for you, so you should calculate the sales tax out yourself.
C
Sales tax varies by state, so you can travel to a state with a lower tax rate and make your purchase there.
D
If you buy an item on credit, the credit bureau must pay the sales tax instead of you, so you should make your purchase using a credit card.
13

A family eats out at a restaurant and the total for their meals is $73.89. They also pay sales tax of 5.8% and leave a tip for their server. If the family leaves a total of $93, which of the following might be a description of the service they received?

A
They left a 10% tip, so the service was probably below average.
B
They left a 15% tip, so the service was probably average.
C
They left a 20% tip, so the service was probably above average.
D
They left a 25% tip, so the service was probably outstanding.
14

Clovis wants to make a surprise visit to his uncle who lives out of town. He purchases an airline ticket for $69. There is a 15% sales tax on the price of the airline ticket. In addition he must pay a baggage fee of $20. When he arrives at the airport, Clovis takes a taxi to his uncle's house which is 8 miles from the airport. The taxi fee is $2.50 per mile. If Clovis has spent a total of $123.35 for the airline ticket and taxi, at what percent of his fare did Clovis tip the taxi driver?

A
10%
B
15%
C
20%
D
25%
15

Rounded to the nearest thousandth, what is the decimal equivalent of %?

Question illustration
A
0.067
B
0.068
C
0.677
D
0.678
16

A family eats out at a restaurant and the total for their meals is $73.89. They also pay sales tax of 5.8% and leave a tip for their server. If the family leaves a total of $93, which of the following might be a description of the service they received?

A
They left a 10% tip, so the service was probably below average.
B
They left a 15% tip, so the service was probably average.
C
They left a 20% tip, so the service was probably above average.
D
They left a 25% tip, so the service was probably outstanding.
17

Calculate % tax on $1,540.

Question illustration
A
$11.17
B
$109.34
C
$111.65
D
$113.96
18

Using mental math, the approximate tip to leave for a bill of $81.79, if you tip 15% would be _____..

A
$8.20
B
$10.30
C
$12.30
D
$16.40
19

The following list shows the items and prices for a restaurant order. Calculate the total amount if there is a 7% tax and the customer leaves a 20% gratuity.1 appetizer: $7.392 entrees: $16.99 each1 dessert: $5.292 drinks: $2.30 each

A
$65.82
B
$65.10
C
$54.85
D
$40.60
20

Zalia meets her friend at the science museum to see a special exhibition. The admission to the museum is $12.50 per person plus tax. Zalia pays for herself and her friend. They have lunch at the museum’s cafe. Zalia has a sandwich for $5.95, an apple for $1.25 and a drink for $1.69. She is charged tax and also tips her server 15%. If tax is 7.25%, how much did Zalia pay all total for her day at the science museum?

A
$41.43
B
$37.68
C
$36.35
D
$24.27

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