64
RCMultiple Choice

Topic Test — Cumulative exam

Question 64 • ****Spring 2026 Financial Math - MA2007 MQS21QXV

Mrs. Torres goes out of town on a business trip. She spends 3 nights in a hotel at a charge of $80 per night. She pays 9% tax on the room and tips the maid service 10% of the room charge. Mrs. Torres also has meals worth $109.30 before tax and she tips 15%. If the total cost of her trip is $420.04, approximately what tax rate does Mrs. Torres pay on her meals?

Answer
A
6%
B
7%
C
8%
D
9%

Explanation

The hotel room charge is 3 × $80 = $240. Its 9% tax is $21.60, and the maid tip is 10% of $240, or $24. Meals and their 15% tip total $109.30 + $16.395 = $125.695, so the remaining $8.745 of the $420.04 trip total is meal tax. Since $8.745 ÷ $109.30 = 0.08, the meal tax rate is approximately 8%, choice C.

AI-written and checked against the verified answer.

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