Anna enjoys dinner at a restaurant in Washington, D.C., where the sales tax on meals is 10%. She leaves a 15% tip on the price of her meal before the sales tax is added, and the tax is calculated on the pre-tip amount. She spends a total of 27.50 dollars for dinner. What is the cost of her dinner without tax or tip in dollars?
- A)
- B)
- C)
- D)
- E)
Answer
D
Key insight
Tax and tip are both percentages of the same base price, so the total is 1.25 times the meal: 27.50 / 1.25 = 22.
Solution
Let the meal cost dollars. The tax is of and the tip is of ; both are computed on the same pre-tax, pre-tip price. So the total is
Dividing, .
Check: .
The answer is .
Why this works
When several percentages are all taken of the same base, they add into a single multiplier (). The problem's careful wording ("before the sales tax," "on the pre-tip amount") is exactly what guarantees this; read for it. Going from a total back to the base means dividing by the multiplier, never subtracting the percent.
Alternative approach
Test the choices: of is , and . The other choices give totals .
The trap
Subtracting 25% of the total (27.50 * 0.75 = 20.63) instead of dividing by 1.25, or compounding the tip on top of the tax.
Common mistakes
- Subtracting 25% of the total (27.50 * 0.75 = 20.63) instead of dividing by 1.25, or compounding the tip on top of the tax.
- Treating the tip as of the taxed amount, giving and a non-integer .
Techniques
Set up the equation/formula and compute; no special trick needed