A shirt originally priced at $40 is on sale for 25% off. If sales tax is 5%, what is the final price of the shirt?

✓ Correct Answer: Option B

Discount: $40 * 0.25 = $10. Sale price: $40 - $10 = $30. Tax: $30 * 0.05 = $1.50. Final price: $30 + $1.50 = $31.50.