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Answer :
Final answer:
The maximum price of the lunch Valerie can order is approximately $26.01.
Explanation:
To find the maximum price of the lunch Valerie can order, we need to calculate the amount of sales tax and tip, and subtract them from her total budget of $20.00.
First, let's calculate the sales tax. Sales tax is calculated by multiplying the price by the tax rate (in decimal form). In this case, the tax rate is 7%, which is equivalent to 0.07.
Let's assume the price of the lunch is 'x' dollars. The sales tax would be 0.07x dollars.
Next, let's calculate the tip. The tip is calculated by multiplying the total bill (meal plus tax) by the tip rate (in decimal form). In this case, the tip rate is 15%, which is equivalent to 0.15.
The total bill would be the price of the lunch plus the sales tax, which is 'x + 0.07x = 1.07x' dollars. The tip would be 0.15 times the total bill, which is '0.15 * 1.07x = 0.161x' dollars.
Now, let's calculate the maximum price of the lunch Valerie can order. We need to subtract the sales tax and tip from her total budget of $20.00.
Equation: x - (0.07x + 0.161x) = 20
Simplifying the equation, we get:
0.769x = 20
x = 20 / 0.769
x ≈ 26.01
Therefore, the maximum price of the lunch Valerie can order is approximately $26.01.
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