Author 
Message 
TAGS:

Hide Tags

Math Expert
Joined: 02 Sep 2009
Posts: 43850

A special municipal payroll tax charges not tax on a payroll less than [#permalink]
Show Tags
10 Mar 2015, 04:56
2
This post received KUDOS
Expert's post
1
This post was BOOKMARKED
Question Stats:
61% (01:08) correct 39% (01:13) wrong based on 72 sessions
HideShow timer Statistics
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.
Official Answer and Stats are available only to registered users. Register/ Login.
_________________
New to the Math Forum? Please read this: Ultimate GMAT Quantitative Megathread  All You Need for Quant  PLEASE READ AND FOLLOW: 12 Rules for Posting!!! Resources: GMAT Math Book  Triangles  Polygons  Coordinate Geometry  Factorials  Circles  Number Theory  Remainders; 8. Overlapping Sets  PDF of Math Book; 10. Remainders  GMAT Prep Software Analysis  SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS)  Tricky questions from previous years.
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.
What are GMAT Club Tests? Extrahard Quant Tests with Brilliant Analytics



Manager
Status: A mind once opened never loses..!
Joined: 05 Mar 2015
Posts: 222
Location: India
MISSION : 800
WE: Design (Manufacturing)

Re: A special municipal payroll tax charges not tax on a payroll less than [#permalink]
Show Tags
10 Mar 2015, 05:15
1
This post received KUDOS
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
_________________
Thank you
+KUDOS
> I CAN, I WILL <



Manager
Joined: 13 Dec 2013
Posts: 59
Location: Iran (Islamic Republic of)

Re: A special municipal payroll tax charges not tax on a payroll less than [#permalink]
Show Tags
10 Mar 2015, 11:48
1
This post received KUDOS
ANSWER : D , ( with different approach) : 0.1 % (x200,000 ) =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 $ ANSWER D ....



Intern
Joined: 10 Jan 2010
Posts: 23

A special municipal payroll tax charges not tax on a payroll less than [#permalink]
Show Tags
10 Mar 2015, 12:46
(x200,000)*1/100 = 200 > x200,000 = 200*100 > x = 20,000 + 200,000 > x = answer C : $220,000
To verify: 20,000 * 1/100 = $200



Manager
Joined: 14 Sep 2014
Posts: 106
Concentration: Technology, Finance
WE: Analyst (Other)

Re: A special municipal payroll tax charges not tax on a payroll less than [#permalink]
Show Tags
10 Mar 2015, 15:30
1
This post received KUDOS
mehrdadtaheri92 wrote: 1/100 so: 1/100 * 20,000 = 200 !!!! GaryDunn wrote: (x200,000)*1/100 = 200 Be careful. 0.1% is 0.001 or 1/1000, not 1/100.



Manager
Joined: 26 Dec 2012
Posts: 148
Location: United States
Concentration: Technology, Social Entrepreneurship
WE: Information Technology (Computer Software)

Re: A special municipal payroll tax charges not tax on a payroll less than [#permalink]
Show Tags
10 Mar 2015, 18:50
1
This post received KUDOS
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
Thanks Lipsi



Math Expert
Joined: 02 Sep 2009
Posts: 43850

Re: A special municipal payroll tax charges not tax on a payroll less than [#permalink]
Show Tags
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 stepbystep 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).
_________________
New to the Math Forum? Please read this: Ultimate GMAT Quantitative Megathread  All You Need for Quant  PLEASE READ AND FOLLOW: 12 Rules for Posting!!! Resources: GMAT Math Book  Triangles  Polygons  Coordinate Geometry  Factorials  Circles  Number Theory  Remainders; 8. Overlapping Sets  PDF of Math Book; 10. Remainders  GMAT Prep Software Analysis  SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS)  Tricky questions from previous years.
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.
What are GMAT Club Tests? Extrahard Quant Tests with Brilliant Analytics



Director
Joined: 07 Aug 2011
Posts: 578
Concentration: International Business, Technology

Re: A special municipal payroll tax charges not tax on a payroll less than [#permalink]
Show Tags
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. \((X200,000)*0.1% = 200\) X=400,000 Answer D
_________________
Thanks, Lucky
_______________________________________________________ Kindly press the to appreciate my post !!



NonHuman User
Joined: 09 Sep 2013
Posts: 13810

Re: A special municipal payroll tax charges not tax on a payroll less than [#permalink]
Show Tags
17 Jan 2018, 06:24
Hello from the GMAT Club BumpBot! Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up  doing my job. I think you may find it valuable (esp those replies with Kudos). Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
_________________
GMAT Books  GMAT Club Tests  Best Prices on GMAT Courses  GMAT Mobile App  Math Resources  Verbal Resources




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






