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

It is currently 31 Jul 2015, 02:19
GMAT Club Tests

Close

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
Your Progress

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

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Last year the first $ 30,000 of each Country X resident's

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Senior Manager
Senior Manager
avatar
Joined: 31 Oct 2011
Posts: 329
Followers: 1

Kudos [?]: 350 [0], given: 18

Last year the first $ 30,000 of each Country X resident's [#permalink] New post 24 Feb 2012, 22:27
00:00
A
B
C
D
E

Difficulty:

  15% (low)

Question Stats:

92% (02:31) correct 8% (01:46) wrong based on 61 sessions
Last year the first $ 30,000 of each Country X resident's annual taxable income was taxed at the rate of 15 percent, and taxable income in excess of $ 30,000 was taxed at a rate of 27 percent. If Mr. Smith was a resident last year, was all of his taxable income taxed at the 15 percent rate?

(1) Last year Mr. Smith's tax, based on his taxable income, was $ 3,750.

(2) If Mr. Smith's taxable income had been twice as much as it was, his tax would have been $ 9,900.
[Reveal] Spoiler: OA
Expert Post
2 KUDOS received
Math Expert
User avatar
Joined: 02 Sep 2009
Posts: 28781
Followers: 4592

Kudos [?]: 47371 [2] , given: 7123

Re: PT #8 DS 15 [#permalink] New post 25 Feb 2012, 00:00
2
This post received
KUDOS
Expert's post
Last year the first $ 30,000 of each Country X resident's annual taxable income was taxed at the rate of 15 percent, and taxable income in excess of $ 30,000 was taxed at a rate of 27 percent. If Mr. Smith was a resident last year, was all of his taxable income taxed at the 15 percent rate?

Basically the question asks whether Mr. Smith's income was less than or equal to $30,000. Also notice that for $30,000 tax is $30,000*0.13=$4,500.

(1) Last year Mr. Smith's tax, based on his taxable income, was $ 3,750. Since the tax was less than $4,500 then the income was less than $30,000. Sufficient.

(2) If Mr. Smith's taxable income had been twice as much as it was, his tax would have been $ 9,900. From $9,900, $4,500 was paid on $30,000 and the rest $5,400 were paid on an additional income (income over $30,000) at a rate of 27%. Additional income would be: x*0.27=$5,400 --> x=$20,000. So, if Mr. Smith's taxable income had been twice as much it would be $30,000+$20,000=$50,000, so his actual income is $50,000/2=$25,000. Sufficient.

Answer: D.

Hope it's clear.
_________________

NEW TO MATH FORUM? PLEASE READ THIS: ALL YOU NEED FOR QUANT!!!

PLEASE READ AND FOLLOW: 12 Rules for Posting!!!

RESOURCES: [GMAT MATH BOOK]; 1. Triangles; 2. Polygons; 3. Coordinate Geometry; 4. Factorials; 5. Circles; 6. Number Theory; 7. Remainders; 8. Overlapping Sets; 9. PDF of Math Book; 10. Remainders; 11. GMAT Prep Software Analysis ; 12. SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS) ; 12. Tricky questions from previous years.

COLLECTION OF QUESTIONS:
PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat

DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS ; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.


What are GMAT Club Tests?
25 extra-hard Quant Tests

GMAT Club Premium Membership - big benefits and savings

Re: PT #8 DS 15   [#permalink] 25 Feb 2012, 00:00
    Similar topics Author Replies Last post
Similar
Topics:
4 Each of the 110 residents in Dashville is either a rancher guerrero25 3 04 Aug 2013, 02:55
1 Experts publish their posts in the topic In the last two years, each of Jeremy’s six children grew in metallicafan 1 12 Apr 2012, 15:05
5 Experts publish their posts in the topic Each first-year student at a certain school selects either enigma123 6 29 Mar 2012, 14:59
1 Experts publish their posts in the topic Each week John earns X dollars per hour for the first 40 rite2deepti 2 25 Nov 2010, 04:56
8 Experts publish their posts in the topic Last year, the five employees of company X took an average GMAT10 8 22 Jan 2010, 11:41
Display posts from previous: Sort by

Last year the first $ 30,000 of each Country X resident's

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.