First, there was $37.50.
Then, there was a tax of 8%.
Then, there was a tip of 18%.
Since the tip is after the tax, it's not going to affect it, and we can essentially ignore it.
The real question here is just what is 8% of $37.50?
To find the percent of something, first you need to put the percent as a decimal.
8% in decimal form is 0.08 (If you think about it literally, they're both 8 hundredths)
Finally, just multiply the percent in decimal form by the number.
37.50 dollars × 0.08 = 3 dollars.
