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A special municipal payroll tax charges not tax on a payroll less than

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A special municipal payroll tax charges not tax on a payroll less than [#permalink]

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A special municipal payroll tax charges not tax on a payroll less than $200,000 and only 0.1% on a company’s payroll above $200,000. If Belfried Industries paid $200 in this special municipal payroll tax, then they must have had a payroll of

A. $180,000
B. $202,000
C. $220,000
D. $400,000
E. $2,200,000



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[Reveal] Spoiler: OA

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Re: A special municipal payroll tax charges not tax on a payroll less than [#permalink]

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New post 10 Mar 2015, 05:15
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Hi

The 200 paid is 0.1% of the additional amount above 200,000. Let it be X

Now 0.1% of X = 200

Therefore X= 200,000

Total = 200,000 + X= 400,000
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Re: A special municipal payroll tax charges not tax on a payroll less than [#permalink]

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New post 10 Mar 2015, 11:48
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ANSWER : D , ( with different approach) :

0.1 % (x-200,000 ) =200 $


so , if we plug -in answer D : we will have : 0.1 % ( 400,000 - 200,000 ) = 0.1 % ( 200,000 ) for easy calculation , first consider : 0.1 * 200,000 = 20,000 so apply % it means here


1/100 so: 1/100 * 20,000 = 200 !!!! so LHS is EQUAL TO RHS !!! therefore , the total payroll is 400,000 $ :lol: :lol: :lol: ANSWER D ....
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A special municipal payroll tax charges not tax on a payroll less than [#permalink]

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New post 10 Mar 2015, 12:46
(x-200,000)*1/100 = 200 ---> x-200,000 = 200*100 ---> x = 20,000 + 200,000 ---> x = answer C : $220,000

To verify: 20,000 * 1/100 = $200
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Re: A special municipal payroll tax charges not tax on a payroll less than [#permalink]

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New post 10 Mar 2015, 15:30
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mehrdadtaheri92 wrote:
1/100 so: 1/100 * 20,000 = 200 !!!!

GaryDunn wrote:
(x-200,000)*1/100 = 200


Be careful. 0.1% is 0.001 or 1/1000, not 1/100.
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Re: A special municipal payroll tax charges not tax on a payroll less than [#permalink]

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New post 10 Mar 2015, 18:50
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Assume, X=payroll taxable (with more than $200K0; therefore as per question X*.1/100 = 200; X = 200,000.
Total payroll = payroll not taxable +payroll taxable = 200,000+200,000 = 400,000
Therefore answer is D, $400,000


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Re: A special municipal payroll tax charges not tax on a payroll less than [#permalink]

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New post 15 Mar 2015, 20:07
Bunuel wrote:
A special municipal payroll tax charges not tax on a payroll less than $200,000 and only 0.1% on a company’s payroll above $200,000. If Belfried Industries paid $200 in this special municipal payroll tax, then they must have had a payroll of

A. $180,000
B. $202,000
C. $220,000
D. $400,000
E. $2,200,000



Kudos for a correct solution.


MAGOOSH OFFICIAL SOLUTION:

METHOD ONE: the step-by-step algebraic inefficiency method:
payroll tax = 0.1% of (payroll income – 200,000)
Remember that 0.1% as a decimal is 0.001.
payroll tax = 0.001*(payroll income – 200,000)
200 = 0.001*(x – 200,000)
200/0.001 = 200,000 = x – 200,000
200,000 + 200,000 = 400,000 = x
Answer = (D)
NB: this method requires one to know a couple tricky ideas about percents & decimals.

METHOD TWO: thinking about percents.
Well, 0.1% of something is $200. Multiply this by ten — then 1% of something is $2000. Now, multiply this by 100 —- 100% of something is $200,000. That’s the amount over the $200,000 baseline, so the total payroll must have been the sum, $400,000. Answer = (D)

METHOD THREE: backsolving
One would use this either if one didn’t know how to do either of the first two approaches, or simply if one thought this would be faster.
Start with (C).

Suppose payroll = $220,000. The first $200,000 is tax free, so only $20,000 is taxed at 0.1%. Well, 1% of $20,000 — knock off two zeros: 1% would be $200. Divide by ten now: 0.1% would be $20. That’s too little. Payroll must be more, so we can immediately eliminate choice (A) & (B) & (C). Even if we had no more time to work on this problem, we could employ solution behavior very effectively at this point.

You could try another answer, (D) or (E), or you could just notice — with (C), the taxable part was ten times too small, because the payroll tax was ten times too small. We need a taxable portion that is ten times bigger — instead of $20,000, we need a taxable portion of $200,000. Add this to the baseline = $400,000.


Answer = (D).
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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.


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Re: A special municipal payroll tax charges not tax on a payroll less than [#permalink]

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New post 18 Mar 2015, 23:08
Bunuel wrote:
A special municipal payroll tax charges not tax on a payroll less than $200,000 and only 0.1% on a company’s payroll above $200,000. If Belfried Industries paid $200 in this special municipal payroll tax, then they must have had a payroll of

A. $180,000
B. $202,000
C. $220,000
D. $400,000
E. $2,200,000



Kudos for a correct solution.



\((X-200,000)*0.1% = 200\)
X=400,000
Answer D
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Re: A special municipal payroll tax charges not tax on a payroll less than [#permalink]

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Re: A special municipal payroll tax charges not tax on a payroll less than   [#permalink] 17 Jan 2018, 06:24
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