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# When Leo imported a certain item, he paid a 7 percent import

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Math Expert
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When Leo imported a certain item, he paid a 7 percent import [#permalink]  06 Aug 2012, 01:39
Expert's post
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Difficulty:

5% (low)

Question Stats:

82% (02:09) correct 18% (00:59) wrong based on 386 sessions
When Leo imported a certain item, he paid a 7 percent import tax on the portion of the total value of the item in excess of $1,000. If the amount of the import tax that Leo paid was$87.50, what was the total value of the item?

(A) $1,600 (B)$1,850
(C) $2,250 (D)$2,400
(E) $2,750 Practice Questions Question: 11 Page: 153 Difficulty: 600 [Reveal] Spoiler: OA _________________ Math Expert Joined: 02 Sep 2009 Posts: 23408 Followers: 3611 Kudos [?]: 28882 [0], given: 2859 Re: When Leo imported a certain item, he paid a 7 percent import [#permalink] 06 Aug 2012, 01:40 Expert's post SOLUTION When Leo imported a certain item, he paid a 7 percent import tax on the portion of the total value of the item in excess of$1,000. If the amount of the import tax that Leo paid was $87.50, what was the total value of the item? (A)$1,600
(B) $1,850 (C)$2,250
(D) $2,400 (E)$2,750

Let the value of the item be $x, then 0.07(x-1,000)=87.5 --> x-1,000=1,250 --> x=2,250. Answer: C. Else, you could backsolve: If the value of the item is$2,000 the tax is (2,000-1,000)*0.07=70, so the value must be more than $2,000. Eliminate A and B. If the value of the item is$2,400 the tax is (2,400-1,000)*0.07=98, so the value must be less than $2,400. Eliminate D and E. Only answer choice C is left. _________________ Current Student Joined: 23 Oct 2010 Posts: 384 Location: Azerbaijan Concentration: Finance Schools: HEC '15 (A) GMAT 1: 690 Q47 V38 Followers: 13 Kudos [?]: 146 [0], given: 73 Re: When Leo imported a certain item, he paid a 7 percent import [#permalink] 06 Aug 2012, 09:04 (x-1000)*0.07=87.5 x=2250 _________________ Happy are those who dream dreams and are ready to pay the price to make them come true Manager Joined: 28 Sep 2011 Posts: 69 Location: United States GMAT 1: 520 Q34 V27 GMAT 2: 550 Q V GMAT 3: 690 Q47 V38 GPA: 3.01 WE: Information Technology (Commercial Banking) Followers: 1 Kudos [?]: 15 [0], given: 9 Re: When Leo imported a certain item, he paid a 7 percent import [#permalink] 06 Aug 2012, 10:43 Used back substitution. using A we get$42 of interest. So we want something close to double the price to get the right answer. C was the next candidate.
Math Expert
Joined: 02 Sep 2009
Posts: 23408
Followers: 3611

Kudos [?]: 28882 [0], given: 2859

Re: When Leo imported a certain item, he paid a 7 percent import [#permalink]  10 Aug 2012, 02:27
Expert's post
SOLUTION

When Leo imported a certain item, he paid a 7 percent import tax on the portion of the total value of the item in excess of $1,000. If the amount of the import tax that Leo paid was$87.50, what was the total value of the item?

(A) $1,600 (B)$1,850
(C) $2,250 (D)$2,400
(E) $2,750 Let the value of the item be$x, then 0.07(x-1,000)=87.5 --> x-1,000=1,250 --> x=2,250.

Else, you could backsolve:
If the value of the item is $2,000 the tax is (2,000-1,000)*0.07=70, so the value must be more than$2,000. Eliminate A and B.
If the value of the item is $2,400 the tax is (2,400-1,000)*0.07=98, so the value must be less than$2,400. Eliminate D and E.

Only answer choice C is left.
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Re: When Leo imported a certain item, he paid a 7 percent import [#permalink]  18 Dec 2013, 09:21
Bunuel wrote:
SOLUTION

When Leo imported a certain item, he paid a 7 percent import tax on the portion of the total value of the item in excess of $1,000. If the amount of the import tax that Leo paid was$87.50, what was the total value of the item?

(A) $1,600 (B)$1,850
(C) $2,250 (D)$2,400
(E) $2,750 Let the value of the item be$x, then 0.07(x-1,000)=87.5 --> x-1,000=1,250 --> x=2,250.

Else, you could backsolve:
If the value of the item is $2,000 the tax is (2,000-1,000)*0.07=70, so the value must be more than$2,000. Eliminate A and B.
If the value of the item is $2,400 the tax is (2,400-1,000)*0.07=98, so the value must be less than$2,400. Eliminate D and E.

Only answer choice C is left.

Do you have tips or a guide on how to most efficiently divide with non-integers in the denominator? I have seen two PS questions where they want us to divide some integer value with a non-integer (0.8 and now 0.07), and I do not really know how to properly approach the division.
Math Expert
Joined: 02 Sep 2009
Posts: 23408
Followers: 3611

Kudos [?]: 28882 [0], given: 2859

Re: When Leo imported a certain item, he paid a 7 percent import [#permalink]  19 Dec 2013, 00:01
Expert's post
aeglorre wrote:
Bunuel wrote:
SOLUTION

When Leo imported a certain item, he paid a 7 percent import tax on the portion of the total value of the item in excess of $1,000. If the amount of the import tax that Leo paid was$87.50, what was the total value of the item?

(A) $1,600 (B)$1,850
(C) $2,250 (D)$2,400
(E) $2,750 Let the value of the item be$x, then 0.07(x-1,000)=87.5 --> x-1,000=1,250 --> x=2,250.

Else, you could backsolve:
If the value of the item is $2,000 the tax is (2,000-1,000)*0.07=70, so the value must be more than$2,000. Eliminate A and B.
If the value of the item is $2,400 the tax is (2,400-1,000)*0.07=98, so the value must be less than$2,400. Eliminate D and E.

Only answer choice C is left.

Do you have tips or a guide on how to most efficiently divide with non-integers in the denominator? I have seen two PS questions where they want us to divide some integer value with a non-integer (0.8 and now 0.07), and I do not really know how to properly approach the division.

Work with integers:
0.07(x-1,000)=87.5;

7(x-1,000)=8750;

x-1,000=\frac{8750}{7}.
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Re: When Leo imported a certain item, he paid a 7 percent import [#permalink]  19 Dec 2013, 02:27
Since we know Leo pays 7% of the amount that is in excess of $1000 We can assume 'x' to be the excess amount. Then 7 percent of x = 87.50 => x = 1250. Hence total value = 1000 + 1250 = 2250. Hence (C) Manager Joined: 07 Apr 2014 Posts: 148 Followers: 0 Kudos [?]: 6 [0], given: 81 Re: When Leo imported a certain item, he paid a 7 percent import [#permalink] 09 Sep 2014, 21:38 Bunuel wrote: When Leo imported a certain item, he paid a 7 percent import tax on the portion of the total value of the item in excess of$1,000. If the amount of the import tax that Leo paid was $87.50, what was the total value of the item? (A)$1,600
(B) $1,850 (C)$2,250
(D) $2,400 (E)$2,750

Practice Questions
Question: 11
Page: 153
Difficulty: 600

Hi bunuel,

please let me know whether my reasoning is correct..

7 percent import tax on the portion of the total value of the item. Tax paid=$87.50 7/100 = 87.50/X ==> 1250.. 1250+1000 = 2250. though i got an answer correct . how we could consider 87.50 for only 1250 rather than 2250? .. I got tried on blind guess but i got the answer.. Intern Status: I am not a product of my circumstances. I am a product of my decisions Joined: 20 Jan 2013 Posts: 43 Location: India Concentration: Operations, General Management GMAT 1: 690 Q46 V38 GPA: 3.92 WE: Operations (Energy and Utilities) Followers: 1 Kudos [?]: 14 [0], given: 38 Re: When Leo imported a certain item, he paid a 7 percent import [#permalink] 09 Sep 2014, 22:03 luckyme17187 wrote: Bunuel wrote: When Leo imported a certain item, he paid a 7 percent import tax on the portion of the total value of the item in excess of$1,000. If the amount of the import tax that Leo paid was $87.50, what was the total value of the item? (A)$1,600
(B) $1,850 (C)$2,250
(D) $2,400 (E)$2,750

Practice Questions
Question: 11
Page: 153
Difficulty: 600

Hi bunuel,

please let me know whether my reasoning is correct..

7 percent import tax on the portion of the total value of the item. Tax paid=$87.50 7/100 = 87.50/X ==> 1250.. 1250+1000 = 2250. though i got an answer correct . how we could consider 87.50 for only 1250 rather than 2250? .. I got tried on blind guess but i got the answer.. Consider it like this: 7% of x = 87.50 (7/100) X = 87.50 7X = 8750 X= 1250$

Now tax is payed on an amount in excess of 1000\$. So the total value of the item = 1250 + 1000 = 2250 Ans (B)
Re: When Leo imported a certain item, he paid a 7 percent import   [#permalink] 09 Sep 2014, 22:03
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# When Leo imported a certain item, he paid a 7 percent import

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