Question 1196355

After a lady is seated in a​ restaurant, she realizes that she only has ​$23.00. If she must pay​ 7% sales tax and wishes to leave a 15​% tip on the total bill​ (meal plus​ tax), what is the maximum price of the lunch she can​ order?

The total price of lunch she can afford is ​$____
<pre>Be aware that tips are subject to INCOME TAX but NOT sales tax.

Let maximum price be P
Then a 15% tip will yield 1.15P
In addition, the maximum meal price, plus sales tax will be 1.07P
Since she has $23 to spend, we then get: 1.15P + 1.07P = 23
1.22P = 23
Maximum meal price, or {{{highlight_green(matrix(1,5, P, "=", 23/1.22, "=", highlight("$18.85")))}}}
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Check
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                    Meal cost:  $18.85
     Tip on $18.85: .15(18.85) =  2.83 (rounded)
SALES tax on $18.85: .07(18.85) = <u>1.32</u> (rounded)
                                $23.00</pre>