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After paying a 10 percent tax on all income over $3,000, a

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After paying a 10 percent tax on all income over $3,000, a [#permalink] New post 02 May 2012, 20:41
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After paying a 10 percent tax on all income over $3,000, a person had a net income of $12,000. What was the income before taxes?

A. $13,300
B. $13,000
C. $12,900
D. $10,000
E. $9,000

please help me the logic behind solving this...i am applying the below one

12000=3000+(x-3000)10%
where x is actual income without taxes...

but i dont find any ans over here....
[Reveal] Spoiler: OA
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Re: Tax % [#permalink] New post 02 May 2012, 20:47
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Let x be the income over 3000
Then (x-x/10) + 3000 = 12000
=> x = 10000

Therefore income before taxes = 10000 + 3000 = 13000

Option (B)

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Re: After paying a 10 percent tax on all income over $3,000, a [#permalink] New post 02 May 2012, 23:43
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giri903 wrote:
After paying a 10 percent tax on all income over $3,000, a person had a net income of $12,000. What was the income before taxes?

A. $13,300
B. $13,000
C. $12,900
D. $10,000
E. $9,000

please help me the logic behind solving this...i am applying the below one

12000=3000+(x-3000)10%
where x is actual income without taxes...

but i dont find any ans over here....


Say x is the income before taxes (as you denoted), then equation should be: 3,000+(x-3,000)*0.9=12,000 --> x=13,000.

Answer: B.

Hope it's clear.

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Re: After paying a 10 percent tax on all income over $3,000, a [#permalink] New post 03 May 2012, 00:07
Thanks a ton...i understood what mistake i have done...
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Re: After paying a 10 percent tax on all income over $3,000, a [#permalink] New post 03 May 2012, 07:35
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giri903 wrote:
After paying a 10 percent tax on all income over $3,000, a person had a net income of $12,000. What was the income before taxes?

A. $13,300
B. $13,000
C. $12,900
D. $10,000
E. $9,000

please help me the logic behind solving this...i am applying the below one

12000=3000+(x-3000)10%
where x is actual income without taxes...

but i dont find any ans over here....




simple way to solve the problem

as for first 3000$ there is no tax, so the amount given after deducting 10% tax is 12000$(9000+3000) that means it also incl 3000$ so after deducting that 3000 from 1200 leaves 9000 which is 90% of the taxable income so the equation looks like this

for 90% 9000
for 100 % 10000

therefore the total taxable income is 10000$ and income before deducting tax is 10000$+3000$=13000$

Answer option is b

Hope it short and clear

if satisfied give me +1 kudos.
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Re: After paying a 10 percent tax on all income over $3,000, a [#permalink] New post 28 Feb 2013, 22:29
3000 + x - 10x/100 = 12000
Solving this, we get ans = B (10000)

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Re: After paying a 10 percent tax on all income over $3,000, a   [#permalink] 28 Feb 2013, 22:29
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