Find all School-related info fast with the new School-Specific MBA Forum

 It is currently 13 Feb 2016, 18:04

### 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

# In state X , there is a tax of $480 on taxable income up to  Question banks Downloads My Bookmarks Reviews Important topics Author Message Intern Joined: 25 Oct 2004 Posts: 7 Followers: 0 Kudos [?]: 0 [0], given: 0 In state X , there is a tax of$480 on taxable income up to [#permalink]  06 Nov 2004, 04:01
00:00

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 0 sessions
This topic is locked. If you want to discuss this question please re-post it in the respective forum.

In state X , there is a tax of $480 on taxable income up to and including$12,000 and an additional tax of $250 on the amount over$12,000 up to and including $17,000. On a total taxable income of$17,000, what is the ratio of the rate of tax paid on the income in excess of $12,000 to the rate of the tax paid on the income up to and including$12,000?

(a) 1 to 4
(b) 4 to 5
(c) 1
(d) 5 to 4
(e) 4 to 1

Looking forward,
B/R
Director
Joined: 16 Jun 2004
Posts: 893
Followers: 2

Kudos [?]: 38 [0], given: 0

I think the keyword is 'rate' of tax paid.

So essentially, the answer is (250/5000)/(480/12000)

which is (250/5000) * (12000/480) = 5/4.

So, D.
Intern
Joined: 25 Oct 2004
Posts: 7
Followers: 0

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

Oh , Venksune ! You are absolutely right . "Rate" is a keyword.

Thank you so much.
Oh Gal Len
Manager
Joined: 13 Oct 2004
Posts: 50
Followers: 0

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

Quote:
I think the keyword is 'rate' of tax paid.

So essentially, the answer is (250/5000)/(480/12000)

which is (250/5000) * (12000/480) = 5/4.

Just a question.... should it not be this way ???

The tax in excess of 12000 will be 480 + 250 = 730

so the rate of tax in excess should be (730/17000) / (480/12000)

which makes it 73/(4x17) , however it does not match the answer.
Display posts from previous: Sort by