# Michael and Imani go out to eat for lunch.

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## Question:

Michael and Imani go out to eat for lunch.Part A
If their food and beverages cost \$25.30 and there is an 8% meals tax, how much is the bill? Enter your answer in the box.
\$
Part B
If Michael and Imani add an 18% tip to the bill, what does their lunch cost in total? Enter your answer in the box.
\$

Based on the amount that the meal cost and the relevant add-ons, the following is true:

• a. The bill is \$27.32
• b. The cost of the lunch is \$32.24

The bill inclusive of taxes will be:

= Amount x ( 1 + tax rate)

= 25.30 x ( 1 + 8%)

= \$27.32

If they added a tip, the tip would come before the tax. The bill before tax would be:

= 25.30 x ( 1 + 18%)

= \$29.85

The total bill would then be:

= 29.85 x ( 1 + 8%)

= \$32.24

In conclusion, the bill would be higher with the tip.

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