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? Choose the correct choice from the following options.
A) $ 1,600
B) $ 1,850
C) $ 2,250
D) $ 2,440
E) $ 2,560

Rationale: "let x be the value of the item . 0.07 * ( x - 1000 ) = 109.20 x = 2560 the answer is e ."
Answer: E