To boost sales around the holidays, the government of the fictional country of Capitalitamia dictates that a citizen may purchase goods up to a total value of $1,000 tax-free but must pay a 7% tax on the portion of the total value in excess of $1,000. How much tax must be paid by a citizen who purchases goods with a total value of $1,220?

(A) $14.00
(B) $15.40
(C) $54.60
(D) $70.00
(E) $87.40
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Value above 1000 will have a tax of 7%, 1220 - 1000 = $ 220

$220 will be taxed @ 7%

$15.40
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If you notice any discrepancy in my reasoning, please let me know. Lets improve together.

Quote which i can relate to.
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