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

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15 Mar 2012, 01:03

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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?

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?

Re: Country X taxes each of its citizens an amount equal to 12 [#permalink]

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03 May 2012, 11:39

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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$

Re: Country X taxes each of its citizens an amount equal to 12 [#permalink]

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16 Nov 2013, 15:57

Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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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?

Could there be trouble in other problems? Or can I use my approach as well? I see that if I do it like you I get the total income right away, but for me it's easier to do it the other way (it's just clearer to me).

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?

Could there be trouble in other problems? Or can I use my approach as well? I see that if I do it like you I get the total income right away, but for me it's easier to do it the other way (it's just clearer to me).

Thanks!

I see nothing wrong with your approach.
_________________

Re: Country X taxes each of its citizens an amount equal to 12 [#permalink]

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28 Dec 2013, 11:28

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.

40000/100 = 400 --> 400*12 = 4800

8000 - 4800 = 3200 ---> (20/100)x = 3200 ---> x = 16000.. 16000 is the excess salary over 40000.. So 40000 + 160000 = 56000

Re: Country X taxes each of its citizens an amount equal to 12 [#permalink]

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08 Jul 2016, 05:15

Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
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