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 8 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 correct option.
A) $54.00
B) $89.60
C) $90.00
D) $100.80
E) $154.80
Correct Answer: B   The tourist must pay tax on $1720 - $600 = $1120. Thus, the amount of tax he has to pay is 0.08 ($1120) 1720 -  600= 
<gadget id="calculator">1720 -  600</gadget>
<output>1_120</output>
$1120. Thus, the amount of tax he has to pay is 0.08 ($1120)= $89.60. The correct answer is $89.60.
<result>B</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 8 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?