9
QuizLong Text

Tax and Gratuities

Question 9 • Skelton - GSN - Financial Math - MA2007

The Harringtons go to a restaurant for lunch and their bill is $86.20. After 6.5% tax and tip, they pay a total of $100. If the Harringtons were exceptionally pleased with their service, decide if their tip reflected this. Explain your reasoning.

Answer

Answer:

After 6.5% tax, the bill was about $91.80, so the tip was about $8.20. That is roughly 9.5% of the original $86.20 bill, which is below the usual 15–20% range. If the Harringtons were exceptionally pleased, their tip did not reflect that.

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