Convert 7% to a decimal: 0.07 Sales Tax = $36.00 x 0.07 = $2.52 Total = $36.00 x 1.07 = $38.52
I use 1.07 for the total because you need ($36.00 x 1) for the actual price of the product, plus ($36.00 x 0.07) for the tax part, so: ($36.00 x 1) + ($36.00 x 0.07) = $36.00(1 + 0.07) = $36.00 x 1.07 = $38.52