First find the amount the price increased.
amount of change
= (percent change) x (starting value)
= (8%) x ($20)
= (0.08) x ($20)
= $1.60
(Remember to convert the percent to a decimal before multiplying.)
Now add the tax onto the price:
$20 + $1.60 = $21.60
The price, including sales tax, is $21.60.