The 8% the problem is referring to is referring to 8% of 12. If we were to multiply the decimal version of 8%, which is 0.08, by 12, we can find what 8% of 12 is. The product of those two numbers is 0.96, which is equal to $0.96. Now we can add this amount to the original price of $12. Therefore making the total new price of the basket $12.96.
