1999 Gauss 8 Problem 7

If the sales tax rate were to increase from 7\% to 7.5\%, then the tax on a \$1000 item would go up by

\textbf{(A)}\ \$75.00\quad \textbf{(B)}\ \$5.00\quad \textbf{(C)}\ \$0.5\quad \textbf{(D)}\ \$0.05\quad \textbf{(E)}\ \$7.50

If there are no answer choices shown, enter a numerical answer.

Full credit to this problem is given to the CEMC, you may view all Gauss contests here.