Sales tax and tip will increase the price of an item.
The cost of each meal is: $10.89
Let the cost of both meals be x.
A 20% tip means that, the current price is:
[tex]Price = x \times (1 + 20\%)[/tex]
A 6% sales tax on the meal means that, the current price is:
[tex]Price = x \times (1 + 20\%) \times (1 + 6\%)[/tex]
So, we have:
[tex]Price = x \times (1 + 0.20) \times (1 + 0.06)[/tex]
[tex]Price = x \times (1.20) \times (1.06)[/tex]
[tex]Price = x \times 1.272[/tex]
The amount paid is $27.72
So, the equation becomes
[tex]27.72= x \times 1.272[/tex]
Make x the subject
[tex]x = \frac{27.72}{1.272}[/tex]
[tex]x = 21.78[/tex]
So, the cost of each meal is:
[tex]Each= \frac{21.78}{2}[/tex]
[tex]Each= 10.89[/tex]
Hence, the cost of each meal is: $10.89
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