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In state X , there is a tax of $480 on taxable income up to

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In state X , there is a tax of $480 on taxable income up to [#permalink] New post 06 Nov 2004, 04:01
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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

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 [#permalink] New post 06 Nov 2004, 04:47
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.
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 [#permalink] New post 06 Nov 2004, 04:54
Oh , Venksune ! You are absolutely right . "Rate" is a keyword.

Thank you so much.
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 [#permalink] New post 06 Nov 2004, 07:46
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.
  [#permalink] 06 Nov 2004, 07:46
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In state X , there is a tax of $480 on taxable income up to

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