To find the total cost when $245 is 7%, you can set up the equation:
\[ 0.07 \times \text{Total Cost} = 245 \]
To solve for the total cost, divide both sides by 0.07:
\[ \text{Total Cost} = \frac{245}{0.07} \]
Calculating the right side:
\[ \text{Total Cost} = 3500 \]
Thus, the total cost is $3500.