You need to calculate the tip and tax seperately, then add everything together. The tax is 8%, which can be found with the equation $62.50 x .08 = $5. The tip, which was added before tax, can be found with the equation 62.50 x .20 = $12.50. To find the total amount John paid, add all the meal price, tax, and tip together. $62.50 + $5 + $12.50 = $80