If the value of a piece of property decreases by 10 percent : GMAT Data Sufficiency (DS)
Check GMAT Club Decision Tracker for the Latest School Decision Releases http://gmatclub.com/AppTrack

 It is currently 16 Jan 2017, 11:27

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# If the value of a piece of property decreases by 10 percent

Author Message
TAGS:

### Hide Tags

Intern
Joined: 24 Jul 2007
Posts: 6
Followers: 0

Kudos [?]: 0 [0], given: 0

If the value of a piece of property decreases by 10 percent [#permalink]

### Show Tags

08 Aug 2007, 06:22
00:00

Difficulty:

35% (medium)

Question Stats:

67% (02:06) correct 33% (01:18) wrong based on 97 sessions

### HideShow timer Statistics

If the value of a piece of property decreases by 10 percent while the tax rate on the property increases by 10 percent, what is the effect on the taxes?

A. Taxes increase by 10 percent
B. Taxes increase by 1 percent
C. There is no change in taxes
D. Taxes decrease by 1 percent
E. Taxes decrease by 10 percent
[Reveal] Spoiler: OA

Last edited by Bunuel on 11 Jan 2013, 02:55, edited 1 time in total.
Renamed the topic, edited the question and added OA.
Director
Joined: 12 Jul 2007
Posts: 862
Followers: 15

Kudos [?]: 285 [0], given: 0

### Show Tags

08 Aug 2007, 06:42
it's hard to explain, but the 10% increase isn't referring to an additional 10% of tax on the houses but an increase of 10% of the 10%.

.1 x 1.1 = .11
10% x 1.1 = 11%

then I just plugged in numbers

100,000 x .1 = 10,000
90,000 x .11 = 9,900

decrease of 1%
Intern
Joined: 24 Jul 2007
Posts: 6
Followers: 0

Kudos [?]: 0 [0], given: 0

### Show Tags

08 Aug 2007, 07:25
I was thinking additional 10% on the house, it's clear now. Thanks!
Intern
Joined: 22 Jan 2012
Posts: 22
Followers: 0

Kudos [?]: 36 [0], given: 11

### Show Tags

10 Jan 2013, 21:05
eschn3am wrote:
it's hard to explain, but the 10% increase isn't referring to an additional 10% of tax on the houses but an increase of 10% of the 10%.

.1 x 1.1 = .11
10% x 1.1 = 11%

then I just plugged in numbers

100,000 x .1 = 10,000
90,000 x .11 = 9,900

decrease of 1%

Still don't understand the wording too well; can someone elaborate on this?
Thanks!
Current Student
Joined: 27 Jun 2012
Posts: 418
Concentration: Strategy, Finance
Followers: 77

Kudos [?]: 777 [0], given: 184

Re: If the value of a piece of property decreases by 10 percent [#permalink]

### Show Tags

10 Jan 2013, 21:26
Consider value of the property = 100
Tax rate on the property = 40%
Thus, original tax amount = 40% of 100 = 40

Property value after 10% decrease = 90
Tax rate value after 10% Increase = 44%

New total tax amount = 44% of 90 = 39.6 (reduced below the original tax amount 40)

Net decrease in tax amount = 0.4 (i.e. 1% decrease)

_________________

Thanks,
Prashant Ponde

Tough 700+ Level RCs: Passage1 | Passage2 | Passage3 | Passage4 | Passage5 | Passage6 | Passage7
VOTE GMAT Practice Tests: Vote Here
PowerScore CR Bible - Official Guide 13 Questions Set Mapped: Click here

Manager
Joined: 07 May 2012
Posts: 76
Location: United States
Followers: 3

Kudos [?]: 136 [0], given: 23

### Show Tags

12 May 2013, 08:18
essarr wrote:
eschn3am wrote:
it's hard to explain, but the 10% increase isn't referring to an additional 10% of tax on the houses but an increase of 10% of the 10%.

.1 x 1.1 = .11
10% x 1.1 = 11%

then I just plugged in numbers

100,000 x .1 = 10,000
90,000 x .11 = 9,900

decrease of 1%

Still don't understand the wording too well; can someone elaborate on this?
Thanks!

Lets say value of the property is $V and tax on that$V is T% . Hence the tax amount on the $V is =$VT
now value is decreased by 10 % ( 0.9V) and tax increased by 10% ( 1.1 T) , the new tax amount is 0.9V*1.1T = 0.99VT

Hence new tax amount decreases by 0.01VT ( i.e 1% the original)
_________________

Jyothi hosamani

Verbal Forum Moderator
Joined: 10 Oct 2012
Posts: 630
Followers: 80

Kudos [?]: 1116 [0], given: 136

Re: If the value of a piece of property decreases by 10 percent [#permalink]

### Show Tags

12 May 2013, 21:13
johngrg wrote:
If the value of a piece of property decreases by 10 percent while the tax rate on the property increases by 10 percent, what is the effect on the taxes?

A. Taxes increase by 10 percent
B. Taxes increase by 1 percent
C. There is no change in taxes
D. Taxes decrease by 1 percent
E. Taxes decrease by 10 percent

Initial value =100 ,tax rate = 100%. Thus, the tax to be paid = 100. After the required change,
the new value = 90 and the new tax rate = 110%. The new tax amount to be paid = 99. Change in tax paid = 1% decrease.
D.
_________________
Re: If the value of a piece of property decreases by 10 percent   [#permalink] 12 May 2013, 21:13
Similar topics Replies Last post
Similar
Topics:
11 If a number N is decreased by p percent and then the resulting value 14 01 Oct 2015, 05:32
2 What is the value of 10 percent of y? 3 19 Sep 2015, 11:58
The estimated savings rate of Country X decreased by 10 % 1 06 Feb 2013, 13:33
2 The price of an automobile decreased m percent between 2010 4 14 Dec 2012, 08:19
9 The price of a certain property increased by 10% in the 8 13 Oct 2009, 05:41
Display posts from previous: Sort by