Ami and her friends went for a dance lesson. It cost $242 before taxes. Tax and gratuity added 23% in additional charges. Ami calculates this as $55.66 in additional charges. Is this reasonable? Explain.
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Given the 23% tax and gratuity rate, Ami's estimation of $55.66 in extra expenses appears acceptable based on the facts supplied.
- But, without knowing further details about the cost per person and the size of the group, it is hard to assess whether the $297.66 overall cost is appropriate.
- We can apply some basic maths to see whether Ami's estimation of the $55.66 in extra costs is fair.
- Initially, we must ascertain how much 23% of the dancing lesson's original price is. By dividing $242 by 0.23, which results in $55.66, we may do this. Ami's computation was accurate, thus.
- We can now determine whether or not this amount in additional fees is appropriate. The location of the dancing class and the calibre of the service can both affect the tax and gratuity rate, which is typically around 23 percent. Tax rates of 10% or more are typical in various regions, while gratuity charges might range from 15% to 20% or more.
- We also don't know how many individuals were in Ami's group or how much the dancing lesson actually cost per participant. It's challenging to judge if the final cost of $297.66 (which includes the original cost of $242 and the extra charges of $55.66) is reasonable or not without this information.
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