Tip
Percent (%) is a ratio that compares a number to 100 by division.
Sample Problem
Two friends went out to lunch and split the cost equally. The meal’s cost was $20.40. Tax is an additional 5% on the meal’s cost. The friends decide to leave 20% of the meal’s cost (not including tax) for a tip. How much will each friend spend on the meal?
Answer Options
(A) $10.33
(B) $12.64
(C) $12.75
(D) $21.42
(E) $25.50
View Correct Answer
(C) $12.75
Tip: 0.2 × $20.40 = $4.08
Tax: 0.05 × $20.40 = $1.02
Total: $20.40 + $5.10 = $25.50
Cost per friend: $25.50 ÷ 2 = $12.75
