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Difficulty: MediumTaxes and Tips

A corporate team books a conference center for a retreat. The venue charges $1,200\$1,200 for the room rental and $800\$800 for the catering. The contract specifies a 5%5\% local tax that applies only to the room rental, and an 18%18\% mandatory gratuity that applies only to the catering. Calculate the required values based on this information.

Answer:The tax amount is $【60】\$【60】, the gratuity is $【144】\$【144】, and the final total cost is $【2204】\$【2204】.

Answer

Tax: $60\$60, Gratuity: $144\$144, Total: $2,204\$2,204
To find the final total, the tax and gratuity must be calculated separately based on their respective costs. The 5%5\% tax on the $1,200\$1,200 room is $60\$60. The 18%18\% gratuity on the $800\$800 catering is $144\$144. Adding the original costs ($1,200+$800=$2,000\$1,200 + \$800 = \$2,000) to the tax ($60\$60) and gratuity ($144\$144) yields a final total of $2,204\$2,204.

Step-by-Step Solution

1
Calculate the local tax on the room rental.
$1,200×0.05=$60\$1,200 \times 0.05 = \$60
The 5%5\% tax only applies to the $1,200\$1,200 room rental cost.
2
Calculate the mandatory gratuity on the catering.
$800×0.18=$144\$800 \times 0.18 = \$144
The 18%18\% gratuity only applies to the $800\$800 catering cost.
3
Calculate the final total cost of the retreat.
$1,200+$800+$60+$144=$2,204\$1,200 + \$800 + \$60 + \$144 = \$2,204
The final invoice includes the original room and catering costs, plus the calculated tax and gratuity.

Key Concept

Calculating specific taxes and tips based on different principal amounts within a single transaction.
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Topics

Taxes and Tips

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