when leo 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 leo paid was $87.50, what was the total value of the item?

The total value of Leo’s item was $2,250. Here’s the quick reasoning:

• Let the total value of the item be xxx.
• Only the amount above $1,000 is taxed at 7%, so the taxable portion is (x−1000)(x-1000)(x−1000).
• The tax Leo paid is $87.50, so:

0.07(x−1000)=87.500.07(x-1000)=87.500.07(x−1000)=87.50

• Divide both sides by 0.07:

x−1000=87.500.07=1250x-1000=\frac{87.50}{0.07}=1250x−1000=0.0787.50​=1250

• Add 1000 to both sides:

x=1250+1000=2250x=1250+1000=2250x=1250+1000=2250

So, the item’s total value is $2,250.