A group of friends went to lunch. The bill, before sales tax and tip, was $37.50. A sales tax of 8% was added. The group then tipped 18% on the amount after the sales tax was added. What was the total amount the group paid, including tax and tip?
First we need to find the amount including tax. Therefore we must multiply by 1.08 (since we pay 100% + 8% = 108%). We find $37.50 × 1.08 = $40.50
Now we add the tip to the amount of money including taxes. To do this we must multiply by 1.18 (since we pay 100% + 18% = 118%). We find $40.50 × 1.18 = $47.79
Hence, the group pay a total amount of money of $47.79
