Calculating the Amount After Sales Tax

Oct 13, 2025 by wbrum.org 80 views

Introduction

When a group of friends goes out to lunch, the total bill can be affected by various factors such as sales tax and tips. In this scenario, we are given the initial bill before sales tax and tip, which is $\$37.50$ . A sales tax of $8\%$ is added to this amount, and then the group tips $18\%$ on the amount after the sales tax was added. In this article, we will calculate the total amount the group needs to pay.

Calculating the Sales Tax

The sales tax is calculated as a percentage of the initial bill. In this case, the sales tax is $8\%$ of $\$37.50$ . To calculate the sales tax, we can use the formula:

Sales Tax = Initial Bill x Sales Tax Rate

Substituting the given values, we get:

Sales Tax = $\$37.50$ x $0.08$

Sales Tax = $\$3.00$

Calculating the Amount After Sales Tax

The sales tax is added to the initial bill to get the amount after sales tax. Therefore, the amount after sales tax is:

Amount After Sales Tax = Initial Bill + Sales Tax

Substituting the given values, we get:

Amount After Sales Tax = $\$37.50$ + $\$3.00$

Amount After Sales Tax = $\$40.50$

Calculating the Tip

The group tips $18\%$ on the amount after sales tax. To calculate the tip, we can use the formula:

Tip = Amount After Sales Tax x Tip Rate

Substituting the given values, we get:

Tip = $\$40.50$ x $0.18$

Tip = $\$7.29$

Calculating the Total Amount

The total amount the group needs to pay is the sum of the amount after sales tax and the tip. Therefore, the total amount is:

Total Amount = Amount After Sales Tax + Tip

Substituting the given values, we get:

Total Amount = $\$40.50$ + $\$7.29$

Total Amount = $\$47.79$

Conclusion

In this article, we calculated the total amount a group of friends needs to pay for lunch after sales tax and tip. The initial bill was $\$37.50$ , and a sales tax of $8\%$ was added, followed by a tip of $18\%$ on the amount after sales tax. The total amount the group needs to pay is $\$47.79$ .

Discussion

This problem can be solved using various mathematical concepts such as percentages, addition, and multiplication. The sales tax and tip rates are given as decimals, which makes it easier to calculate the amounts. However, in real-life scenarios, the sales tax and tip rates are often given as percentages, which requires converting them to decimals before calculating the amounts.

Example

Suppose the initial bill is $\$50.00$ , and the sales tax rate is $10\%$ . The tip rate is $15\%$ on the amount after sales tax. Calculate the total amount the group needs to pay.

Solution

First, calculate the sales tax:

Sales Tax = Initial Bill x Sales Tax Rate = $\$50.00$ x $0.10$ = $\$5.00$

Next, calculate the amount after sales tax:

Amount After Sales Tax = Initial Bill + Sales Tax = $\$50.00$ + $\$5.00$ = $\$55.00$

Then, calculate the tip:

Tip = Amount After Sales Tax x Tip Rate = $\$55.00$ x $0.15$ = $\$8.25$

Finally, calculate the total amount:

Total Amount = Amount After Sales Tax + Tip = $\$55.00$ + $\$8.25$ = $\$63.25$

Therefore, the total amount the group needs to pay is $\$63.25$ .

References

[1] Calculating Sales Tax and Tip Rates. (n.d.). Retrieved from https://www.investopedia.com/calculating-sales-tax-and-tip-rates-4589106

Keywords

Sales tax
Tip
Percentage
Addition
Multiplication
Decimals
Real-life scenarios
Calculating amounts
Total bill
Group of friends
Lunch
Bill
Sales tax rate
Tip rate
Amount after sales tax
Total amount

Introduction

In our previous article, we calculated the total amount a group of friends needs to pay for lunch after sales tax and tip. The initial bill was $\$37.50$ , and a sales tax of $8\%$ was added, followed by a tip of $18\%$ on the amount after sales tax. The total amount the group needs to pay is $\$47.79$ . In this article, we will answer some frequently asked questions related to calculating the total bill.

Q&A

Q: What is the formula for calculating sales tax?

A: The formula for calculating sales tax is:

Sales Tax = Initial Bill x Sales Tax Rate

Q: How do I calculate the amount after sales tax?

A: To calculate the amount after sales tax, you need to add the sales tax to the initial bill.

Amount After Sales Tax = Initial Bill + Sales Tax

Q: What is the formula for calculating the tip?

A: The formula for calculating the tip is:

Tip = Amount After Sales Tax x Tip Rate

Q: How do I calculate the total amount?

A: To calculate the total amount, you need to add the amount after sales tax and the tip.

Total Amount = Amount After Sales Tax + Tip

Q: What if the sales tax rate is given as a percentage?

A: If the sales tax rate is given as a percentage, you need to convert it to a decimal before calculating the sales tax.

Sales Tax Rate (decimal) = Sales Tax Rate (percentage) / 100

Q: What if the tip rate is given as a percentage?

A: If the tip rate is given as a percentage, you need to convert it to a decimal before calculating the tip.

Tip Rate (decimal) = Tip Rate (percentage) / 100

Q: Can I use a calculator to calculate the total amount?

A: Yes, you can use a calculator to calculate the total amount. However, it's always a good idea to double-check your calculations to ensure accuracy.

Q: What if I make a mistake in my calculations?

A: If you make a mistake in your calculations, you can always recheck your work and recalculate the total amount. It's also a good idea to use a calculator to double-check your calculations.

Example Questions

Q: A group of friends goes out to dinner and the initial bill is $\$50.00$ . The sales tax rate is $10\%$ and the tip rate is $15\%$ on the amount after sales tax. What is the total amount the group needs to pay?

A: First, calculate the sales tax:

Sales Tax = Initial Bill x Sales Tax Rate = $\$50.00$ x $0.10$ = $\$5.00$

Next, calculate the amount after sales tax:

Amount After Sales Tax = Initial Bill + Sales Tax = $\$50.00$ + $\$5.00$ = $\$55.00$

Then, calculate the tip:

Tip = Amount After Sales Tax x Tip Rate = $\$55.00$ x $0.15$ = $\$8.25$

Finally, calculate the total amount:

Total Amount = Amount After Sales Tax + Tip = $\$55.00$ + $\$8.25$ = $\$63.25$

Therefore, the total amount the group needs to pay is $\$63.25$ .

Q: A group of friends goes out to lunch and the initial bill is $\$25.00$ . The sales tax rate is $5\%$ and the tip rate is $10\%$ on the amount after sales tax. What is the total amount the group needs to pay?

A: First, calculate the sales tax:

Sales Tax = Initial Bill x Sales Tax Rate = $\$25.00$ x $0.05$ = $\$1.25$

Next, calculate the amount after sales tax:

Amount After Sales Tax = Initial Bill + Sales Tax = $\$25.00$ + $\$1.25$ = $\$26.25$

Then, calculate the tip:

Tip = Amount After Sales Tax x Tip Rate = $\$26.25$ x $0.10$ = $\$2.63$

Finally, calculate the total amount:

Total Amount = Amount After Sales Tax + Tip = $\$26.25$ + $\$2.63$ = $\$28.88$

Therefore, the total amount the group needs to pay is $\$28.88$ .

Conclusion

In this article, we answered some frequently asked questions related to calculating the total bill. We also provided examples of how to calculate the total amount using different sales tax and tip rates. Remember to always double-check your calculations to ensure accuracy.

Discussion

Calculating the total bill can be a complex process, especially when dealing with sales tax and tip rates. However, by following the formulas and examples provided in this article, you can easily calculate the total amount the group needs to pay.

References

[1] Calculating Sales Tax and Tip Rates. (n.d.). Retrieved from https://www.investopedia.com/calculating-sales-tax-and-tip-rates-4589106

Keywords

Sales tax
Tip
Percentage
Addition
Multiplication
Decimals
Real-life scenarios
Calculating amounts
Total bill
Group of friends
Lunch
Bill
Sales tax rate
Tip rate
Amount after sales tax
Total amount
Q&A
Calculating total bill