The equation \( 7%(p) + p = 1.07p \) represents the total amount paid after adding a 7% tax or fee to the original amount \( p \).
Thus, the correct situation that matches this equation is:
D. the amount that Sandy paid for a shirt with 7% tax on p.
In this case, \( 7%(p) \) represents the tax added to the original price \( p \), resulting in a total of \( 1.07p \).