Consumer Math (Calculating Amount of Tip)
Nine ladies from the sewing circle went out to a restaurant to celebrate completing a quilt.

Consumer Math (Calculating Amount of Tip)

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What is a tip? No, it’s not a hint or a clue about something, at least not in the monetary consumer world. A tip is a monetary percentage given or paid in addition to the base price for a service provided. It is also often referred to as a “gratuity.”

There are many professions where giving the provider a tip is important. In fact, the bulk of their income is dependent upon tips. If no one tipped them their employers would have to pay them more. This, in turns, means the employer would have to charge the public more to make up for the higher wages. So some professions pay their employees a low wage and those employees then rely upon your tips for the bulk of their income. Generally, professions that provide a personalized service to you are given a tip.

Some professions that provide you with personalized service and which you should tip are waiters and waitresses, cab drivers, tour guides, hotel bell hops (yes they do still exist in many places), hotel maids, valet attendants (they park your car for you), movers and barbers and hair dressers. So, the next question is, how much do you give as a tip?

Often, tips are based on percentages. This will, therefore, help you to practice and hone your skills on calculating with percentages. Below is a list of the generally accepted amounts of tip that should be given per profession.

1.
John, his wife Beth, and their four children stayed at a moderately priced hotel outside of Disneyland for 4 days. How much should John tip the maid before he checks-out?
$24.00
$12.00
$8.00
$6.00
Working the problem: John plus Beth makes 2 people and then they have 4 children so there are a total of 6 people. The rule is to pay a maid at a moderately priced hotel $2.00 per day for every 2 people. As there are a total of 6 people we need to divide 6 ÷ 2 = 3. Next, we multiply $2.00 x 3 = $6.00 per day. The family stayed for 4 days so we now multiply $6.00 x 4 = $24.00.
Solution: John should leave the maid a tip of $24.00.
Answer (a) is the correct answer
2.
Margaret went to the hairdressers to get her hair washed, cut, dyed and styled. She was very pleased with the results! Her bill came to $85.00. How much should Margaret tip her hairdresser?
$17.75
$18.00
$19.50
$21.25
Working the problem: Margaret required a lot of service to be performed by the hairdresser and she was very satisfied with that service. When the service and results are acceptable, giving 25% is customary. So we must now multiply $85.00 x 25% or $85.00 x .25 = $21.25.
Solution: Margaret should give the hairdresser a tip of $21.25.
Answer (d) is the correct answer
3.
Mark and Andrew both drove to a new arena and both went to the valet parking section. Mark drove a Ford Focus and Andrew drove a Porsche 911. What would be the total tip the valet attendant should get from the both of them?
$10.00
$7.00
$5.00
$4.00
Working the problem: Valet attendants do not get a percentage but rather get a tip based mostly on the type of the car and the distance that they need to travel to park and retrieve the car. As distance was not mentioned, we can only go off of the type of cars both Mark and Andrew drove. A Ford Focus is definitely a lower-end car compared to a Porsche 911. So Mark would pay the valet attendant $2.00 and Andrew would pay the attendant $5.00. $2.00 + $5.00 = $7.00
Solution: The valet attendant should get a total tip of $7.00.
Answer (b) is the correct answer
4.
Five college friends went on a tour of haunted houses in Savannah, Georgia. The tour lasted for nearly 4 hours. At the end of the tour each of the friends gave the tour guide a tip. How much tip did the tour guide get in total from the college friends?
$10.00
$15.50
$25.00
$30.00
Working the problem: A nearly 4 hour tour is quite a long tour so the tip should reflect the length of time. For this length of tour the customary tip is $5.00. As we have 5 college friends on the tour we need to multiply $5.00 x 5 = $25.00.
Solution: The tour guide got a total tip of $25.00.
Answer (c) is the correct answer
5.
Mr. & Mrs. Summer hired movers to move their furniture to their new home. It took 3 movers a total of 8 hours to move all of the furniture. How much in total should the movers receive for a tip?
$100.00
$120.00
$30.00
$60.00
Working the problem: The customary tip for a mover who works up to a full 8 hours is $20.00. We have a total of three workers who worked the full 8 hours. Therefore, we need to multiply $20.00 x 3 = $60.00.
Solution: The total of the tip the movers should have received was $60.00.
Answer (d) is the correct answer
6.
Fred traveled to New York City to meet with new clients. He took a cab from the airport to downtown New York. It took nearly an hour to get to his destination. His cab fare came to $67.00. How much should Fred tip the cab driver?
$13.40
$13.20
$12.90
$12.70
Working the problem: As the distance traveled here took some time, the customary tip for a cab driver would be 20%. As the fare was $67.00 we must multiply $67.00 x 20% or $67.00 x .20 = $13.40.
Solution: Fred should give the cab driver a tip of $13.40.
Answer (a) is the correct answer
7.
James took his date to a really fancy restaurant. He was shocked when he got his bill for $133.47, especially since the service wasn’t even all that good. The tax on the bill was for $12.02. James decided to only leave a 15% tip. How much of a tip did James leave?
$20.02
$18.22
$18.02
$17.92
Working the problem: First, as you do not pay a tip on taxes, you must subtract the taxes from the total bill. Here that would be $133.47 - $12.02 = $121.45. James is only going to leave a 15% tip so now we must multiply $121.45 x 15% or $121.45 x .15 = $18.22.
Solution: James left a tip of $18.22.
Answer (b) is the correct answer
8.
Nine friends took a trip together to Las Vegas. Each friend had two bags. How much should the friends tip the Bell Hop?
$9.00
$36.00
$18.00
$16.00
Working the problem: The customary tip given to a Bell Hop is $1.00 per bag. As there were 9 friends and each at two bags, we multiply 9 x 2 = 18. There was a total of 18 bags so now we multiply 18 x $1.00 = $18.00.
Solution: The friends should give the Bell Hop an $18.00 tip.
Answer (c) is the correct answer
9.
A group of 12 foreign officials rented a suite at the Grand Hyatt Hotel in San Francisco for $525.00 per night. They stayed for 6 nights. How much of a tip should the group leave the maid before they depart and what amount should each person pay in order to leave that tip?
$180.00 and $15.00
$72.00 and $6.00
$360.00 and $30.00
$240.00 and $20.00
Working the problem: This hotel is a high-end hotel and the customary rule for leaving a tip is $5.00 per day for 2 people. As we have 12 people we need to divide 12 ÷ 2 = 6. There are 6 sets of 2 people. Now we need to multiply $5.00 x 6 = $30.00. We now know that each day the maid should get a $30.00 tip. As the group stayed for 6 days we need to multiply $30.00 x 6 = $180.00. Now we need to find out what each person had to pay. Since there were 12 people, we need to divide $180.00 ÷ 12 = $15.00.
Solution: The group should leave the maid a tip of $180.00 and each person needs to pay $15.00 towards that $180.00 tip.
Answer (a) is the correct answer
10.
Nine ladies from the sewing circle went out to a restaurant to celebrate completing a quilt. The total bill came to $166.11 of which $15.00 was tax. They decided to leave an 18% tip. How much of a tip should they leave the waitress? In addition, each of the ladies will contribute the same amount towards the tip so how much will each lady have to contribute to the tip?
$24.20 and $2.92
$25.20 and $3.00
$26.20 and $3.04
$27.20 and $3.02
Working the problem: First, as you do not pay a tip on taxes, you must subtract the taxes from the total bill. Here that would be $166.11 - $15.00 = $151.11. We next know that they want to give an 18% tip so we need to multiply $151.11 x 18% or $151.11 x .18 = $27.20. As they will evenly pay the tip we must divide $27.20 ÷ 9 = $3.02.
Solution: The ladies will give the waitress a tip of $27.20 and each lady will contribute $3.02 toward that tip.
Answer (d) is the correct answer
Author:  Christine G. Broome

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