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 12 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?  Select
A) $ 54.00  B) $ 64.80  C) $ 90.00  D) $ 100.80  E) $ 134.40

Rationale: "correct answer : e the tourist must pay tax on $ 1720 - $ 600 = $ 1120 . thus , the amount of tax he has to pay is 0.12 ( $ 1120 ) = $ 134.40 . the correct answer is e ."
Answer: E