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A person needs to pay a tax of 5% over the excess bill of $1000 ......
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Updated on: 29 Nov 2018, 04:24
Question Stats:
48% (02:46) correct 52% (02:32) wrong based on 102 sessions
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A person needs to pay a tax of 5% over the excess bill of $1000 purchase. However, if the total bill (i.e. purchase bill + tax) exceeds $1999, then he needs to pay a tax of 10% over the excess purchase of $1000. What can be the maximum purchase bill amount which will ensure that the person pays only 5% tax? A. $1001 B. $1500 C. $1543.24 D. $1950 E. $1951.43 To read all our articles:Must read articles to reach Q51
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Re: A person needs to pay a tax of 5% over the excess bill of $1000 ......
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09 Oct 2018, 04:57
EgmatQuantExpert wrote: A person needs to pay a tax of 5% over the excess bill of $1000 purchase. However, if the total bill (i.e. purchase bill + tax) exceeds $1999, then he needs to pay a tax of 10% over the excess purchase of $1000. What can be the maximum purchase bill amount which will ensure that the person pays only 5% tax? A. $1001 B. $1500 C. $1543.24 D. $1950 E. $1951.43 As there is no tax in 1000, we can deduct 1000 from 1999 to get 19991000=999 So \((1+\frac{5}{100})*x<999......105x<99900........x<951.5.\) So 1000+951.43 is the correct answer.. How do we avoid calculations? No tax on 1000 so 5% on 1000 is 50 thus amount increase above 1999... So let us take 950 which is in choice D, 5% on 950 =47.5.. So add 47.5 on 1950=1950+47.5=1997.5 So 1950 is not the highest, we can increase by 1 and the increase in tax will be 0.05 so 1951 will give 1951+47.5+0.05=1998.55 So 1951.43 must be correct E
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Re: A person needs to pay a tax of 5% over the excess bill of $1000 ......
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11 Oct 2018, 04:34
Solution Given:• A person needs to pay a tax of 5% over the excess bills of $1000 purchase • And if the total bill exceeds $1999, he needs to pay a tax of 10% over the excess purchase of $1000 To find:• Maximum purchase bill amount, such that he needs to pay only 5% tax Approach and Working: According to the given information, for him to pay a 5% tax over the excess bill, the purchase bill amount must be greater than $1000, and it cannot be greater than 1999 • So, let us assume the purchase bill amount as x • Now, the total bill amount will be = purchase amount + tax
o Where, purchase amount = x, and tax = 5% of (x 1000) • Thus, total bill amount = x + 5(x  1000)/100 = 1.05x  50
o This must be maximum, which is equal to 1999, since if it exceeds 1999, then he needs to pay 10% tax • Therefore, 1.05x = 2049
o Implies, x = 2049/1.05 = 1951.43 Hence, the correct answer is option E. Answer: E
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Re: A person needs to pay a tax of 5% over the excess bill of $1000 ......
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22 Aug 2019, 01:42
EgmatQuantExpert wrote: Solution Given:• A person needs to pay a tax of 5% over the excess bills of $1000 purchase • And if the total bill exceeds $1999, he needs to pay a tax of 10% over the excess purchase of $1000 To find:• Maximum purchase bill amount, such that he needs to pay only 5% tax Approach and Working: According to the given information, for him to pay a 5% tax over the excess bill, the purchase bill amount must be greater than $1000, and it cannot be greater than 1999 • So, let us assume the purchase bill amount as x • Now, the total bill amount will be = purchase amount + tax
o Where, purchase amount = x, and tax = 5% of (x 1000) • Thus, total bill amount = x + 5(x  1000)/100 = 1.05x  50
o This must be maximum, which is equal to 1999, since if it exceeds 1999, then he needs to pay 10% tax • Therefore, 1.05x = 2049
o Implies, x = 2049/1.05 = 1951.43 Hence, the correct answer is option E. Answer: EHow you get 2049/1.05 = 1951.43? It is 1951.428, so answer E is incorrect, as it exceeds this number. Correct answer should be D, as it is maximum possible number that is less than 1951.428




Re: A person needs to pay a tax of 5% over the excess bill of $1000 ......
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22 Aug 2019, 01:42






