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Difficulty: MediumTaxes and Tips

A couple hires a professional photographer for their wedding. The photographer's base package costs $1,200.00\$1,200.00. The contract includes a 9%9\% state service tax and a 15%15\% mandatory gratuity for the photography assistants. Both the tax and the gratuity are calculated based on the base package cost. What is the final total amount the couple will pay?

  1. A
    $288.00\$288.00
  2. B
    $1,228.80\$1,228.80
  3. $1,488.00\$1,488.00Answer
  4. D
    $1,504.20\$1,504.20

Answer

The final total amount is $1,488.00\$1,488.00.
Both the tax and the gratuity are calculated independently on the base package cost. The tax is 9%9\% of $1,200.00\$1,200.00, yielding $108.00\$108.00. The gratuity is 15%15\% of $1,200.00\$1,200.00, yielding $180.00\$180.00. Adding these charges to the base cost gives $1,200.00+$108.00+$180.00=$1,488.00\$1,200.00 + \$108.00 + \$180.00 = \$1,488.00. Alternatively, combining the rates gives a total additional charge of 24%24\% (9%+15%9\% + 15\%). 24%24\% of $1,200.00\$1,200.00 is $288.00\$288.00, and $1,200.00+$288.00=$1,488.00\$1,200.00 + \$288.00 = \$1,488.00.

Step-by-Step Solution

1
Calculate the cost of the state service tax.
$1,200.00×0.09=$108.00\$1,200.00 \times 0.09 = \$108.00
The 9%9\% tax is applied directly to the base package cost.
2
Calculate the cost of the mandatory gratuity.
$1,200.00×0.15=$180.00\$1,200.00 \times 0.15 = \$180.00
The 15%15\% gratuity is also applied directly to the base package cost, as stated in the problem.
3
Add the tax and gratuity to the base cost to find the final total.
$1,200.00+$108.00+$180.00=$1,488.00\$1,200.00 + \$108.00 + \$180.00 = \$1,488.00
The final bill is the sum of the original price and all additional percentage-based fees.

Key Concept

Calculating and combining multiple percentages based on a single original amount.
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Topics

Taxes and Tips

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