A tourist does not have to pay tax on the first $600 of goods he purchases in Country B, but does have to pay a 12 percent tax on the portion of the total value that is in excess of $600. What tax must be paid by a tourist if he buys goods with a total value of $1720?
Choose the most appropriate option:
A) $54.00 B) $64.80 C) $90.00 D) $100.80 E) $134.40
Correct Answer: E   The tourist must pay tax on $1720 - $600 = $1120. Thus, the amount of tax he has to pay is 0.12 ($1120) 1720 -  600= 
<gadget id="calculator">1720 -  600</gadget>
<output>1_120</output>
$1120. Thus, the amount of tax he has to pay is 0.12 ($1120)= $134.40. The correct answer is $134.40.
<result>E</result>
A tourist does not have to pay tax on the first $600 of goods he purchases in Country B, but does have to pay a 12 percent tax on the portion of the total value that is in excess of $600. What tax must be paid by a tourist if he buys goods with a total value of $1720?