When a merchant imported a certain item, he paid 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 the merchant paid was $101.50, what was the total value of the item?  Pick one:
A) $1,850 B) $2,450 C) $2,750 D) $3,150 E) $3,450
Let x be the value in excess of $1,000.   0.07x = 101.5   x = $1,450   The total value was $1,450 + $1,000 = $2,450.   The answer is $2,450.
<result>B</result>
When a merchant imported a certain item, he paid 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 the merchant paid was $101.50, what was the total value of the item?