Total Value

[Da_Gr8_Mperor]

When Leo imported a certain item, he made a 7 percent import tax on the portion of the total value of the item in excess of $1,000. If the amount of the import tax that Leo paid was $87.50, what was the total value of the item?

A. $1,600
B. $1,850
C. $2,250
D. $2,400
E. $2,750

[GmatJunky]

When Leo imported a certain item, he made a 7 percent import tax on the portion of the total value of the item in excess of $1,000. If the amount of the import tax that Leo paid was $87.50, what was the total value of the item?

A. $1,600
B. $1,850
C. $2,250
D. $2,400
E. $2,750

7%(x) = 87.50
x= 1250
answer 1250 + 1000

[manish8109]

(x-1000)7/100 =87.50

=> x-1000 = 8750/7 = 1250
=>x= 2250(ANS)