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?
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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