As you learn about using percentages in real life examples are available to show you precisely how they are used in everyday settings, from sales tax to more.

### Calculating tips

If you've eaten at a restaurant, you've probably left a **tip** for your server. A **tip** is a small amount of money that you add to your bill when someone gives you service. The amount of a tip is usually a **percentage** of the total cost. For example, you might leave a** fifteen percent **tip at a restaurant for average service.

Let's say you eat at a restaurant with some friends. The bill comes to $12.04, and you'd like to leave a 15% tip. This means you'd like to leave 15% of $12.04. How much money should you leave total?

Click through the slideshow to learn how to calculate tips.

Let's say you went out to eat, and your bill is $12.04. You want to leave a 15% percent tip.

A tip is a **percentage** of the total. In this case, it means the tip is fifteen percent of $12.04.

Whenever you see the phrase **"of something"** in a math sentence, it's usually a hint that you'll need to **multiply**.

So we'll multiply 12.04 by 15%.

Before we can do that, we'll need to convert 15% into a decimal.

We'll move the decimal point two places **to the left**...

We'll move the decimal point two places **to the left**...so 15% becomes 0.15.

Now we can multiply. 0.15 times 12.04 equals 1.80.

So the tip is $1.80.

We could also say that 15% of $12.04 is $1.80.

Remember, a tip is extra money **added** to the total. So we'll add the tip to the bill.

1.80 plus 12.04 equals 13.84.

So the final price of the meal is $13.84, after including tip.

Let's try another example. Let's say you had excellent service and would like to leave a 20% tip for a meal that cost $68.80.

This means the tip will be 20% of $68.80.

We'll multiply 20% by 68.80.

First, we'll need to convert 20% into a decimal, so we'll move the decimal point two places** to the left**.

20% is the same as 0.20.

Now we'll multiply. 68.80 times 0.20 equals 13.76.

So the tip is $13.76.

Another way to say this is that 20% of $68.80 is $13.76.

Finally, we'll add the tip to the bill.

68.80 plus 13.76 equals 82.56.

The final price, after tip, is $82.56.

#### Try This!

Find the final price for each item, including the tip.

You have a pizza delivered to your house. It costs $19. You want to leave the delivery driver a 15% tip. What's the total?

You eat out at a restaurant with some friends. The bill comes to $47.50. If you leave a 20% tip, what is the total cost of your bill?

Your cab fare from home to the airport is $35. You'd like to give your driver an 18% tip. What's the total?

### Assessment

Want even more practice? Try out a short assessment to test your skills by clicking the link below:

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