In Country X a returning tourist may import goods with a total value of $500 or less tax free, but must pay an 8 percent tax on the portion of the total value in excess of $500. What tax must be paid by a returning tourist who imports goods with a total value of $730 ?  Choose the most appropriate option:
A) $58.40  B) $40 .00  C) $24.60  D) $18.40  E) $16.00
The tourist must pay tax on $730 - $500 = $230. Thus the amount to be paid is 0.08*$230 730 -  500= 
<gadget id="calculator">730 -  500</gadget>
<output>230</output>
$230. Thus the amount to be paid is 0.08*$230= $18.40.   Answer: $18.40.
<result>D</result>
In Country X a returning tourist may import goods with a total value of $500 or less tax free, but must pay an 8 percent tax on the portion of the total value in excess of $500. What tax must be paid by a returning tourist who imports goods with a total value of $730 ?