7% of 2.99 is 2.99 ÷ 100, then multiplied by 7. 2.99 divided by 100 is 0.0299. 0.0299 is 1% of 2.99. Then multiply that (0.0299) by 7 to get 7%; 7% = $0.21. Then add that to $2.99 and you get $3.20.
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