That's a question about percentage.
One way to represent percentage is using decimal number. In this way, 1 is equivalent to 100% and the other less percentages using numbers between 0 and 1.
Examples:
If we want to know the percentage of a number, we should multiplacate the number by the porcentage in the decimal number form.
Examples:
In our problem, we have a phone with a increase of 7%. To solve that, it's important to perceive that $230 is equal to 100% and with a increase of 7%, we will pay 107%.
107% in the decimal number form is 1.07. With that information, we should multiplicate 1.07 by the original value and we will find the answer.
We know that [tex]230\times 1.07 = 246.1[/tex], therefore, the total cost of the phone after tax is $246.1.
I hope I've helped. :D
Enjoy your studies. \o/