Estimating a Tip A tip or gratuity is an amount of money that is given to a worker such as a waiter or waitress who performs a service for you. A common tip amount is 15% of the cost of the meal or other service. Generally a tip is determined based on the total bill which includes the cost of the meal and sales tax. If a meal costs \$10.00 and sales tax is 5% the bill is \$10.50. A 15% tip based on the \$10.50 cost would be \$1.58. The total would be \$10.50 + \$1.58 = \$12.08. To estimate the amount of a tip round the total bill to the most significant place value. A \$16.75 meal would round to \$20. Next, move the decimal point of the rounded amount one place to the left. This will be 10% of the total cost. Next divide this amount in half to determine 5%. Add the 10% amount and the 5% amount together to estimate 15% of the total. In this case, it would be a \$2.00 + \$1.00 = \$3.00 tip. Return to Top

#### What is the estimated 15% tip?

Note: Your answer should begin with a dollar sign (e.g. \$2.36 not 2.36)