A couple dining at a restaurant receives a bill for $28.40

A couple dining at a restaurant receives a bill for $28.40. They wish to leave a 10% tip. Which of the following is the estimated gratuity?

A.
$4.00

B.
$6.00

C.
$2.50

D.
$3.00

The correct answer and Explanation is :

The correct answer is D. $3.00.

Calculation:

To calculate a 10% tip on a bill of $28.40, you can multiply the total amount by 0.10:

[
28.40 \times 0.10 = 2.84
]

So, the exact gratuity is $2.84. However, since the question asks for the estimated gratuity, we round the amount. $2.84 rounds up to $3.00, making D the closest estimate.

Why $3.00 is correct:

Gratuities or tips are often estimated and rounded for convenience. Since $2.84 is very close to $3.00, it’s common practice to round up when leaving tips, especially when dealing with small amounts of money. The option C ($2.50) is not close enough, and options A ($4.00) and B ($6.00) are far too high for a 10% tip on $28.40.

Understanding Percentages in Tipping:

A tip of 10% is typically considered a lower-end tip in the service industry, while 15%-20% is more common. In this case, multiplying the total bill by 0.10 (10%) is a quick and easy way to calculate the tip amount. If the couple wanted to leave a higher percentage tip (like 15% or 20%), they would multiply $28.40 by 0.15 or 0.20.

Rounding Tips:

In real-world scenarios, many people round tips to the nearest whole number to simplify the transaction. Tipping is both a customary gesture of appreciation for service and a way to acknowledge good service, with some variation based on local customs or individual preferences.

Thus, the estimated gratuity of $3.00 is correct and practical.

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