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# Country X taxes each of its citizens an amount equal to 12

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Country X taxes each of its citizens an amount equal to 12 [#permalink]  15 Mar 2012, 01:03
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Question Stats:

87% (02:49) correct 12% (01:44) wrong based on 16 sessions
Country X taxes each of its citizens an amount equal to 12 percent of the first \$40,000 of income, plus 20 percent of all income in excess of \$40,000. If a citizen of Country X is taxed a total of \$8,000, what is her income?

A. \$40,000
B. \$56,000
C. \$64,000
D. \$66,667
E. \$80,000

Guys - this is how I am trying to solve this algebraically, but its not giving me right answer. Any idea why?

Let the total income = x

Taxes = 0.12 (40000) + 0.2(x-40000) = 8000

Solve for x.
[Reveal] Spoiler: OA

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Last edited by Bunuel on 15 Mar 2012, 01:59, edited 1 time in total.
Edited the question.
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Re: Country X [#permalink]  15 Mar 2012, 01:58
enigma123 wrote:
Country X taxes each of its citizens an amount equal to 12 percent of the first \$40,000 of income, plus 20 percent of all income in excess of \$40,000. If a citizen of Country X is taxed a total of \$8,000, what is her income?

(A) \$40,000
(B) \$56,000
(C) \$64,000
(D) \$66,667
(E) \$80,000

Guys - this is how I am trying to solve this algebraically, but its not giving me right answer. Any idea why?

Let the total income = x

Taxes = 0.12 (40000) + 0.2(x-40000) = 8000

Solve for x.

Equation is correct, so math must be a problem.

0.12*40,000+0.2*(x-40,000)=8,000 --> 4,800+0.2x-8,000=8,000 --> 0.2x=11,200 --> x=56,000.

Hope it helps.
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Re: Country X taxes each of its citizens an amount equal to 12 [#permalink]  03 May 2012, 11:39
enigma123 wrote:
Country X taxes each of its citizens an amount equal to 12 percent of the first \$40,000 of income, plus 20 percent of all income in excess of \$40,000. If a citizen of Country X is taxed a total of \$8,000, what is her income?

A. \$40,000
B. \$56,000
C. \$64,000
D. \$66,667
E. \$80,000

Guys - this is how I am trying to solve this algebraically, but its not giving me right answer. Any idea why?

Let the total income = x

Taxes = 0.12 (40000) + 0.2(x-40000) = 8000

Solve for x.

Guys a simple way to crack problems like this

so for first 40000\$ the tax rate is 12% so 40000*12/100=4800 so the total tax payable is 8000 so if we deduct 4800 from 8000 we get 3200 which is 20% of the remaining so with this we can set the equation like this

20% 3200
100% x

By cross multiplication we get .2x=3200*1 =>x=3200/.2 => 32000/2(multiplying numerator and denominator with 10 to get rid .2 in denominator ) so we get 16000\$ so total income before tax was 40000\$+16000\$=56000\$

Ans option is B

if You are satisfied give me +1 kudos.
Re: Country X taxes each of its citizens an amount equal to 12   [#permalink] 03 May 2012, 11:39
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