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

It is currently 01 Oct 2014, 00:21

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

With Proposition 13, if you bought your house 11 years ago

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
1 KUDOS received
Manager
Manager
avatar
Joined: 28 Jan 2006
Posts: 118
Followers: 1

Kudos [?]: 4 [1] , given: 0

With Proposition 13, if you bought your house 11 years ago [#permalink] New post 04 Aug 2006, 22:47
1
This post received
KUDOS
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 0 sessions
17.With Proposition 13, if you bought your house 11 years ago for $75,000, your property tax would be approximately $914 a year (1 percent of $75,000 increased by 2 percent each year for 11 years); and if your neighbor bought an identical house next door to you for $200,000 this year, his tax would be $2,000 (1 percent of $200,000). Without Proposition 13, both you and your neighbor would pay $6,000 a year in property taxes (3 percent of $200,000).
Which of the following is the conclusion for which the author most likely is arguing in the passage above?
(A) Proposition 13 is unconstitutional because it imposes an unequal tax on properties of equal value.
(B) If Proposition 13 is repealed, every homeowner is likely to experience a substantial increase in property taxes.
(C) By preventing inflation from driving up property values, Proposition 13 has saved homeowners thousands of dollars in property taxes.
(D) If Proposition 13 is not repealed, identical properties will continue to be taxed at different rates.
(E) Proposition 13 has benefited some homeowners more than others.


can some body tell me the math behind it...
ps_dahiya: removed the OA. Please don't provide the OA upfront. This will help you in getting true logic.
_________________

All the best!!
shinewine

1 KUDOS received
VP
VP
User avatar
Joined: 14 May 2006
Posts: 1419
Followers: 4

Kudos [?]: 45 [1] , given: 0

 [#permalink] New post 04 Aug 2006, 22:56
1
This post received
KUDOS
I was b/w B and E, but the fact that someone bought a house 11 years ago doesn't play the biggest role here, hence E is out... here is the analysis of B:

with Prop 13 you pay $964 and you neighbor pays $2000, combined you both pay just under $3000

w/out Prop 13 you both pay $6000...

therefore, you and your neighbor are likely to experience some increase in property tax... no convoluted math here...
1 KUDOS received
Senior Manager
Senior Manager
avatar
Joined: 22 May 2006
Posts: 375
Location: Rancho Palos Verdes
Followers: 1

Kudos [?]: 16 [1] , given: 0

Re: CR from 1000CR : Proposition 13 [#permalink] New post 05 Aug 2006, 00:07
1
This post received
KUDOS
Imo D.. even though I know what the OA is..
I don't think we can assume that there are more ppl who bought properties at lower rate that those who buy properties at higher rate..
All the cases in the argument are hypothetical.
(A) Proposition 13 is unconstitutional because it imposes an unequal tax on properties of equal value.
=> We can't assume author's position from the argument.
(B) If Proposition 13 is repealed, every homeowner is likely to experience a substantial increase in property taxes.
=> Only if every homeowners bought those properties at lower rate. What if there are more ppl. who buy properties
If it says "If Proposition 13 is repealed, there will be a substantial increase in property taxes. I would choose B.
(C) By preventing inflation from driving up property values, Proposition 13 has saved homeowners thousands of dollars in property taxes.
=> Well, If B is the one.. this one has equal value as B.
(D) If Proposition 13 is not repealed, identical properties will continue to be taxed at different rates.
=> With Proposition 13, true.. but might be an answer for inference question.
(E) Proposition 13 has benefited some homeowners more than others.
=> We don't know which is which..

However, we are being asked "Which of the following is the conclusion for which the author most likely is arguing in the passage above?"... does this type of question need particular approach??
Assumption => Most ppl bought properties at lower value..and those propeties' value is going up..
Then, answer should be B
_________________

The only thing that matters is what you believe.

1 KUDOS received
Manager
Manager
avatar
Joined: 09 Jul 2006
Posts: 166
Followers: 1

Kudos [?]: 2 [1] , given: 0

 [#permalink] New post 05 Aug 2006, 07:45
1
This post received
KUDOS
B
1 KUDOS received
Manager
Manager
avatar
Joined: 21 Jul 2006
Posts: 83
Followers: 1

Kudos [?]: 1 [1] , given: 0

Re: CR from 1000CR : Proposition 13 [#permalink] New post 05 Aug 2006, 20:24
1
This post received
KUDOS
shinewine wrote:
17.With Proposition 13, if you bought your house 11 years ago for $75,000, your property tax would be approximately $914 a year (1 percent of $75,000 increased by 2 percent each year for 11 years); and if your neighbor bought an identical house next door to you for $200,000 this year, his tax would be $2,000 (1 percent of $200,000). Without Proposition 13, both you and your neighbor would pay $6,000 a year in property taxes (3 percent of $200,000).
Which of the following is the conclusion for which the author most likely is arguing in the passage above?
(A) Proposition 13 is unconstitutional because it imposes an unequal tax on properties of equal value.
(B) If Proposition 13 is repealed, every homeowner is likely to experience a substantial increase in property taxes.
(C) By preventing inflation from driving up property values, Proposition 13 has saved homeowners thousands of dollars in property taxes.
(D) If Proposition 13 is not repealed, identical properties will continue to be taxed at different rates.
(E) Proposition 13 has benefited some homeowners more than others.


can some body tell me the math behind it...
ps_dahiya: removed the OA. Please don't provide the OA upfront. This will help you in getting true logic.


IMO C. Will explain later if correct
1 KUDOS received
Current Student
User avatar
Joined: 29 Jan 2005
Posts: 5252
Followers: 23

Kudos [?]: 134 [1] , given: 0

Reviews Badge
 [#permalink] New post 06 Aug 2006, 03:34
1
This post received
KUDOS
This is between (D) and (E).

(A) Proposition 13 is unconstitutional because it imposes an unequal tax on properties of equal value. ---> out of scope
(B) If Proposition 13 is repealed, every homeowner is likely to experience a substantial increase in property taxes. ---> extreme
(C) By preventing inflation from driving up property values, Proposition 13 has saved homeowners thousands of dollars in property taxes. ---> too general

(D) If Proposition 13 is not repealed, identical properties will continue to be taxed at different rates. ---> What if the identical properties were purchased in the same year??
(E) Proposition 13 has benefited some homeowners more than others.

(E) is the most conservatively phrased and definately supported by the passage.
  [#permalink] 06 Aug 2006, 03:34
    Similar topics Author Replies Last post
Similar
Topics:
With Proposition 13, if you bought your house 11 years ago JCLEONES 1 08 Jan 2008, 10:16
4 With Proposition 13, if you bought your house 11 years ago leeye84 4 14 Mar 2007, 21:10
With Proposition 13, if you bought your house 11 years ago chanderbgoel 5 16 Oct 2005, 10:33
With Proposition 13, if you bought your house 11 years ago wild_desperado 8 27 Jun 2005, 02:20
With Proposition 13, if you bought your house 11 years ago ninomoi 3 16 Nov 2004, 16:39
Display posts from previous: Sort by

With Proposition 13, if you bought your house 11 years ago

  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®.