GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 16 Oct 2018, 03:35

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.

Close

Request Expert Reply

Confirm Cancel

A town in California fines residents who do not pay their property tax

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Retired Moderator
User avatar
S
Joined: 18 Sep 2014
Posts: 1133
Location: India
GMAT ToolKit User Premium Member Reviews Badge
A town in California fines residents who do not pay their property tax  [#permalink]

Show Tags

New post Updated on: 27 Jul 2015, 05:35
1
4
00:00
A
B
C
D
E

Difficulty:

  75% (hard)

Question Stats:

53% (02:11) correct 47% (02:28) wrong based on 92 sessions

HideShow timer Statistics

A town in California fines residents who do not pay their property taxes on time. All residents must pay their taxes before July 1st for that calendar year or face the following fine structure: For the first month the taxes are overdue (that would be any payment made on July 1st through July 31st), the total fine is 1% of the original tax bill; for each additional month that the taxes are overdue, the total fine is increased by $600 or doubled, whichever results in the lesser amount. What is the total fine for a resident of that town who originally owed $20,000 in property taxes, but did not pay until October 15th?

(A) $1,400
(B) $1,800
(C) $2,400
(D) $21,400
(E) $22,800

Originally posted by Nevernevergiveup on 27 Jul 2015, 05:13.
Last edited by Bunuel on 27 Jul 2015, 05:35, edited 1 time in total.
RENAMED THE TOPIC.
Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 49892
Re: A town in California fines residents who do not pay their property tax  [#permalink]

Show Tags

New post 27 Jul 2015, 05:18
Mechmeera wrote:
A town in California fines residents who do not pay their property taxes on time. All residents must pay their taxes before July 1st for that calendar year or face the following fine structure: For the first month the taxes are overdue (that would be any payment made on July 1st through July 31st), the total fine is 1% of the original tax bill; for each additional month that the taxes are overdue, the total fine is increased by $600 or doubled, whichever results in the lesser amount. What is the total fine for a resident of that town who originally owed $20,000 in property taxes, but did not pay until October 15th?

(A) $1,400
(B) $1,800
(C) $2,400
(D) $21,400
(E) $22,800


Similar question from GMAT Prep: a-certain-library-assesses-fines-for-overdue-books-as-follow-92821.html
_________________

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?
Extra-hard Quant Tests with Brilliant Analytics

Current Student
avatar
S
Joined: 20 Mar 2014
Posts: 2633
Concentration: Finance, Strategy
Schools: Kellogg '18 (M)
GMAT 1: 750 Q49 V44
GPA: 3.7
WE: Engineering (Aerospace and Defense)
GMAT ToolKit User Premium Member Reviews Badge
Re: A town in California fines residents who do not pay their property tax  [#permalink]

Show Tags

New post 27 Jul 2015, 05:24
1
Mechmeera wrote:
A town in California fines residents who do not pay their property taxes on time. All residents must pay their taxes before July 1st for that calendar year or face the following fine structure: For the first month the taxes are overdue (that would be any payment made on July 1st through July 31st), the total fine is 1% of the original tax bill; for each additional month that the taxes are overdue, the total fine is increased by $600 or doubled, whichever results in the lesser amount. What is the total fine for a resident of that town who originally owed $20,000 in property taxes, but did not pay until October 15th?

(A) $1,400
(B) $1,800
(C) $2,400
(D) $21,400
(E) $22,800


Original amount = 20,000

Fine for July = 20,000 * 1% = 200

Fine for August = lesser of the 2 , 200+600= 800 or 200*2=400 . Pick 400

Fine for September = 400+600=1000 or 400*2 = 800. Pick 800

Fine for October = 800+600=1400 or 800*2 = 1600. Pick 1400.

Thus A is the answer.

The wording of the question should be have been clearer as total fines should be = 1400+800+400+200 = 2800 and NOT 1400.

1400 is the fine ONLY for the month of October!
Senior Manager
Senior Manager
User avatar
B
Joined: 28 Jun 2015
Posts: 293
Concentration: Finance
GPA: 3.5
Re: A town in California fines residents who do not pay their property tax  [#permalink]

Show Tags

New post 27 Jul 2015, 05:35
Tax amount = $20,000.

Fine for July = 1% (20,000) = $200.
Fine for August = MIN (200+600, 2*200) = $400.
Fine for September = MIN (400+600, 2*400) = $800.
Fine for October = MIN (800+600, 2*800) = $1400.

Fine amount owed by the resident = $1,400. Ans (A).
_________________

I used to think the brain was the most important organ. Then I thought, look what’s telling me that.

Intern
Intern
avatar
Joined: 25 May 2015
Posts: 22
GMAT ToolKit User Premium Member
Re: A town in California fines residents  [#permalink]

Show Tags

New post 27 Jul 2015, 05:43
Total due (x) = 20,000
Let the fine be P
July = 1 % of x -> 200 = P after July
August = 200 * 2 -> 400 = P after August (either double it or add 600 whichever is lesser)
September = 400 * 2 -> 800 = P after August (either double it or add 600 whichever is lesser)
October = 800 + 600 (since 600 < 800) --> 1400

answer A
Manager
Manager
User avatar
B
Joined: 09 Aug 2017
Posts: 62
Location: United States
Concentration: Technology
GMAT 1: 640 Q44 V33
GMAT 2: 630 Q47 V29
WE: Research (Investment Banking)
Re: A town in California fines residents who do not pay their property tax  [#permalink]

Show Tags

New post 17 Jan 2018, 07:31
1
This one's tough because based on the wording there are a few different ways to construct the formula. Initially, I constructed the formula as .01*20,000+600(n-1)= 2,000
Then I compared it to
200+400+800+1600=3,000

Neither of these are answers. So in going back to the problem, I realized that each month the late either doubles or is an additional 600. I thought it was an either/or calculation.

Then I calculated the incremental penalty for each month and compared to see if it exceeded $600.
200+200+400+600=1400.

1st month late) .01*20,000=200
2nd month late) An additional 200 which is less than 600, total owed after one month 200+200=400
3rd month late) An additional 400 which is less than 600, 400+400=800
4th month late) An additional 600 since, double the penalty would be 800 which exceeds 600. So it's 800+600=1400, A.
_________________

I'd love to hear any feedback or ways to improve my problem solving. I make a lot of silly mistakes. If you've had luck improving on stupid mistakes, I'd love to hear how you did it.

Also, I appreciate any kudos.

GMAT Club Bot
Re: A town in California fines residents who do not pay their property tax &nbs [#permalink] 17 Jan 2018, 07:31
Display posts from previous: Sort by

A town in California fines residents who do not pay their property tax

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


Copyright

GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

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®.