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

 It is currently 30 Apr 2016, 16:17

### 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

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

Author Message
TAGS:

### Hide Tags

Math Expert
Joined: 02 Sep 2009
Posts: 32549
Followers: 5631

Kudos [?]: 68313 [1] , given: 9797

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

### Show Tags

06 Aug 2012, 02:39
1
KUDOS
Expert's post
2
This post was
BOOKMARKED
00:00

Difficulty:

5% (low)

Question Stats:

86% (02:13) correct 14% (01:29) wrong based on 809 sessions

### HideShow timer Statictics

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: 32549 Followers: 5631 Kudos [?]: 68313 [0], given: 9797 Re: When Leo imported a certain item, he paid a 7 percent import [#permalink] ### Show Tags 06 Aug 2012, 02:40 Expert's post 4 This post was BOOKMARKED 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.
_________________
Current Student
Joined: 23 Oct 2010
Posts: 386
Location: Azerbaijan
Concentration: Finance
Schools: HEC '15 (A)
GMAT 1: 690 Q47 V38
Followers: 20

Kudos [?]: 258 [0], given: 73

Re: When Leo imported a certain item, he paid a 7 percent import [#permalink]

### Show Tags

06 Aug 2012, 10:04
(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

I am still on all gmat forums. msg me if you want to ask me smth

Manager
Joined: 28 Sep 2011
Posts: 70
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 [?]: 22 [1] , given: 10

Re: When Leo imported a certain item, he paid a 7 percent import [#permalink]

### Show Tags

06 Aug 2012, 11:43
1
KUDOS
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: 32549 Followers: 5631 Kudos [?]: 68313 [0], given: 9797 Re: When Leo imported a certain item, he paid a 7 percent import [#permalink] ### Show Tags 10 Aug 2012, 03:27 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.
_________________
Manager
Joined: 12 Jan 2013
Posts: 244
Followers: 4

Kudos [?]: 52 [0], given: 47

Re: When Leo imported a certain item, he paid a 7 percent import [#permalink]

### Show Tags

18 Dec 2013, 10:21
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 $$0.07(x-1,000)=87.5$$ --> $$x-1,000=1,250$$ --> $$x=2,250$$. 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. 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: 32549 Followers: 5631 Kudos [?]: 68313 [0], given: 9797 Re: When Leo imported a certain item, he paid a 7 percent import [#permalink] ### Show Tags 19 Dec 2013, 01:01 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:
$$0.07(x-1,000)=87.5$$;

$$7(x-1,000)=8750$$;

$$x-1,000=\frac{8750}{7}$$.
_________________
Manager
Joined: 15 Aug 2013
Posts: 58
Followers: 0

Kudos [?]: 12 [1] , given: 5

Re: When Leo imported a certain item, he paid a 7 percent import [#permalink]

### Show Tags

19 Dec 2013, 03:27
1
KUDOS
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: 147 Followers: 1 Kudos [?]: 19 [0], given: 81 Re: When Leo imported a certain item, he paid a 7 percent import [#permalink] ### Show Tags 09 Sep 2014, 22:38 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.. Manager Status: I am not a product of my circumstances. I am a product of my decisions Joined: 20 Jan 2013 Posts: 132 Location: India Concentration: Operations, General Management GPA: 3.92 WE: Operations (Energy and Utilities) Followers: 3 Kudos [?]: 70 [0], given: 68 Re: When Leo imported a certain item, he paid a 7 percent import [#permalink] ### Show Tags 09 Sep 2014, 23:03 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) Intern Joined: 06 Nov 2014 Posts: 13 Followers: 0 Kudos [?]: 0 [0], given: 0 Re: When Leo imported a certain item, he paid a 7 percent import [#permalink] ### Show Tags 14 Nov 2014, 09:02 Ballparking, instead of$87,5, $84 is easily divisible by 7. If 7% of the sum is=$84 -->
That means 1% is=$84/7 ->$12, which means 100% is $1200$1200+$1000=$2200 --> little more than that so best choice \$2250, other ones are way to far apart.
SVP
Status: The Best Or Nothing
Joined: 27 Dec 2012
Posts: 1858
Location: India
Concentration: General Management, Technology
WE: Information Technology (Computer Software)
Followers: 34

Kudos [?]: 1472 [0], given: 193

Re: When Leo imported a certain item, he paid a 7 percent import [#permalink]

### Show Tags

20 Nov 2014, 03:18
87.5 is the tax paid @ 7%

So the excess amount $$= 87.5 * \frac{7}{100} = 1250$$

Amount = 1000+1250 = 2250

_________________

Kindly press "+1 Kudos" to appreciate

Intern
Joined: 06 Nov 2014
Posts: 13
Followers: 0

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

Re: When Leo imported a certain item, he paid a 7 percent import [#permalink]

### Show Tags

20 Nov 2014, 03:32
PareshGmat wrote:
87.5 is the tax paid @ 7%

So the excess amount $$= 87.5 * \frac{7}{100} = 1250$$

Amount = 1000+1250 = 2250

What's the easiest way to calculate 87.5*7/100 without a calculator?
Senior Manager
Status: Math is psycho-logical
Joined: 07 Apr 2014
Posts: 443
Location: Netherlands
GMAT Date: 02-11-2015
WE: Psychology and Counseling (Other)
Followers: 1

Kudos [?]: 80 [0], given: 169

Re: When Leo imported a certain item, he paid a 7 percent import [#permalink]

### Show Tags

08 Jan 2015, 13:22
I really liked the solution by zerosleep.
Really easy. Nice and simple! Well done!
Manager
Joined: 10 Dec 2012
Posts: 52
Followers: 0

Kudos [?]: 5 [0], given: 37

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

### Show Tags

21 Sep 2015, 04:02
pacifist85 wrote:
I really liked the solution by zerosleep.
Really easy. Nice and simple! Well done!

Yeah even i liked that approach too..
initially i did this question incorrectly

But what i figured out is this:

1000 + x = the entire sum that we need get.

1000= tax free
x= taxable amount

x*0.07 = 87.50
x= 87.25/0.07 ---- 8750/7-----1250

so the original price including excess is = 1000 + 1250 = 2250 ( Answer Choice C)
When Leo imported a certain item, he paid a 7 percent import   [#permalink] 21 Sep 2015, 04:02
Similar topics Replies Last post
Similar
Topics:
New Qns - Important Ones 0 16 Nov 2015, 19:57
8 Increasing the original price of a certain item by 25 percent and then 11 23 Mar 2015, 06:43
2 The price of an item is discounted 10 percent on day 1 of 2 11 Mar 2013, 23:43
When Leo imported a certain item, he paid a 7 percent import 3 05 Oct 2010, 05:42
16 One gram of a certain health food contains 7 percent of the 17 10 Oct 2008, 13:07
Display posts from previous: Sort by