Suppose you buy lunch for $16.60 that includes a 8% sales tax. How much did the restaurant charge you for the lunch (excluding any tax) and how much does the restaurant owe for sales tax?

Business · College · Mon Jan 18 2021

Answered on

Given the statement:

Suppose you buy lunch for $16.60 that includes an 8% sales tax.

Determine how much does the restaurant charge for the lunch and how much does the restaurant owe for sales tax.

Solution:

To determine the total charge, we multiply the decimal value of 8% to $16.60, and then add the product to $16.60. First, we must convert first the percentage to decimal. In converting a percentage into decimal, divide the percentage by 100, hence in converting a decimal to percentage, multiply the percentage by 100.

= 8%/100

= 0.08

= (0.08)($16.60)

= $1.328
Tax cost = $1.328

= $1.328 + $16.60

=$17.93

Total restaurant charge
= $17.93

Final answer:

Total restaurant charge
= $17.93

Tax cost = $1.328

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