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02 May 2012, 21:41
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65% (02:27) correct 35% (01:53) wrong based on 171 sessions

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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

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03 May 2012, 00:43
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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. _________________ Intern Joined: 12 Oct 2011 Posts: 14 Followers: 0 Kudos [?]: 2 [0], given: 8 Re: After paying a 10 percent tax on all income over$3,000, a [#permalink]

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03 May 2012, 01:07
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] Show Tags 03 May 2012, 08:35 4 This post received KUDOS 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

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. SVP Status: The Best Or Nothing Joined: 27 Dec 2012 Posts: 1858 Location: India Concentration: General Management, Technology WE: Information Technology (Computer Software) Followers: 39 Kudos [?]: 1748 [0], given: 193 Re: After paying a 10 percent tax on all income over$3,000, a [#permalink]

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28 Feb 2013, 23:29
3000 + x - 10x/100 = 12000
Solving this, we get ans = B (10000)
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24 Sep 2014, 22:51
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.... Using options works wonderfully well too because of the good round numbers. You know that net income was 12000 so gross must be more. Hence (D) and (E) are definitely out. Also, first 3000 is non-taxable so say the gross income is 13,000 (easiest of the options). Taxable income becomes 10000, 10% of which is 1000 (the amount of tax). This gives us net income of 12000, as expected. So answer is 13,000. Answer (B) _________________ Karishma Veritas Prep | GMAT Instructor My Blog Get started with Veritas Prep GMAT On Demand for$199

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18 Aug 2016, 04:30
awesome Question
Here is my approach =>
Let the original income over 3k be x
hence total income after deduction => 3k+x[1-10/100] =12k
hence x= 10k
so the total orginal income => 3k+10k = 13k
SMASH that B
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Re: After paying a 10 percent tax on all income over $3,000, a [#permalink] Show Tags 18 Aug 2016, 06:00 Let x be the income above 3,000 usd. 0,9x=12,000-3,000 0,9x=9,000 x=10,000 Add the additional 3,000 and we get 13,000. Answer choice: B. _________________ I love being wrong. An incorrect answer offers an extraordinary opportunity to improve. Re: After paying a 10 percent tax on all income over$3,000, a   [#permalink] 18 Aug 2016, 06:00
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