Problem: when a merchant imported a certain item, she 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 $ 109.20, what was the total value of the item ?
Options: a. $ 1,600, b. $ 1,850, c. $ 2,250, d. $ 2,440, e. $ 2,560
e