Hello there! The cost of the item is $40, which makes up 100% of the price. There is 8% tax applied on the item. Let's add both percentages. 100 + 8 is 108. That's 108%. Let's multiply that by 40 to get the total price. 40 * 108% (1.08) is 43.2. There. The final cost of an item is $43.20.