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Suppose you rent a limousine for a formal reception. The bill for the evening is $70.00. A tax of 8% will be added, and you want to tip the chauffeur 20% for excellent driving. How much will you pay in total?
Well, first, start with the tax. 8% of 70 is just 70 x 0.08. That would come out to $5.6, which you will add to your initial total of 70. So far, the added tax totals to $75.60. Next, the tip of 20%. I'd assume you want the tip to be 20% of the original $70? Unless you've been instructed otherwise. Take 70 x 0.2 and add the total to your $75.60. This all comes out to $89.60.
90.72 because 70x.08 = $5.6 than 70+ 5.6 = 75.6 x .20 = 90.72
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