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After paying a 10 percent tax on all income over $3,000, a

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After paying a 10 percent tax on all income over $3,000, a  [#permalink]

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New post 02 May 2012, 21:41
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After paying a 10 percent tax on all income over $3,000, a person had a net income of $12,000. What was the income before taxes?

A. $13,300
B. $13,000
C. $12,900
D. $10,000
E. $9,000

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Re: After paying a 10 percent tax on all income over $3,000, a  [#permalink]

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New post 03 May 2012, 08:35
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giri903 wrote:
After paying a 10 percent tax on all income over $3,000, a person had a net income of $12,000. What was the income before taxes?

A. $13,300
B. $13,000
C. $12,900
D. $10,000
E. $9,000

please help me the logic behind solving this...i am applying the below one

12000=3000+(x-3000)10%
where x is actual income without taxes...

but i dont find any ans over here....




simple way to solve the problem

as for first 3000$ there is no tax, so the amount given after deducting 10% tax is 12000$(9000+3000) that means it also incl 3000$ so after deducting that 3000 from 1200 leaves 9000 which is 90% of the taxable income so the equation looks like this

for 90% 9000
for 100 % 10000

therefore the total taxable income is 10000$ and income before deducting tax is 10000$+3000$=13000$

Answer option is b

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Re: After paying a 10 percent tax on all income over $3,000, a  [#permalink]

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New post 02 May 2012, 21:47
4
Let x be the income over 3000
Then (x-x/10) + 3000 = 12000
=> x = 10000

Therefore income before taxes = 10000 + 3000 = 13000

Option (B)
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Re: After paying a 10 percent tax on all income over $3,000, a  [#permalink]

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New post 03 May 2012, 00:43
2
2
giri903 wrote:
After paying a 10 percent tax on all income over $3,000, a person had a net income of $12,000. What was the income before taxes?

A. $13,300
B. $13,000
C. $12,900
D. $10,000
E. $9,000

please help me the logic behind solving this...i am applying the below one

12000=3000+(x-3000)10%
where x is actual income without taxes...

but i dont find any ans over here....


Say x is the income before taxes (as you denoted), then equation should be: 3,000+(x-3,000)*0.9=12,000 --> x=13,000.

Answer: B.

Hope it's clear.
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Re: After paying a 10 percent tax on all income over $3,000, a  [#permalink]

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New post 03 May 2012, 01:07
Thanks a ton...i understood what mistake i have done...
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Re: After paying a 10 percent tax on all income over $3,000, a  [#permalink]

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New post 28 Feb 2013, 23:29
3000 + x - 10x/100 = 12000
Solving this, we get ans = B (10000)
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Re: After paying a 10 percent tax on all income over $3,000, a  [#permalink]

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New post 24 Sep 2014, 22:51
1
giri903 wrote:
After paying a 10 percent tax on all income over $3,000, a person had a net income of $12,000. What was the income before taxes?

A. $13,300
B. $13,000
C. $12,900
D. $10,000
E. $9,000

please help me the logic behind solving this...i am applying the below one

12000=3000+(x-3000)10%
where x is actual income without taxes...

but i dont find any ans over here....


Using options works wonderfully well too because of the good round numbers. You know that net income was 12000 so gross must be more. Hence (D) and (E) are definitely out.

Also, first 3000 is non-taxable so say the gross income is 13,000 (easiest of the options). Taxable income becomes 10000, 10% of which is 1000 (the amount of tax).
This gives us net income of 12000, as expected. So answer is 13,000.

Answer (B)
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Re: After paying a 10 percent tax on all income over $3,000, a  [#permalink]

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Re: After paying a 10 percent tax on all income over $3,000, a  [#permalink]

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New post 18 Aug 2016, 06:00
Let x be the income above 3,000 usd.
0,9x=12,000-3,000
0,9x=9,000
x=10,000

Add the additional 3,000 and we get 13,000.

Answer choice: B.
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Re: After paying a 10 percent tax on all income over $3,000, a  [#permalink]

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New post 22 Nov 2017, 12:21
1
giri903 wrote:
After paying a 10 percent tax on all income over $3,000, a person had a net income of $12,000. What was the income before taxes?

A. $13,300
B. $13,000
C. $12,900
D. $10,000
E. $9,000


We can let the initial income = n and thus:

12,000 = n - 0.1(n - 3,000)

12,000 = n - 0.1n + 300

11,700 = 0.9n

117,000 = 9n

n = 117,000/9 = 13,000

Answer: B
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Re: After paying a 10 percent tax on all income over $3,000, a  [#permalink]

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New post 04 Jan 2018, 15:44
Hi All,

We're told that AFTER paying a 10% tax on all income OVER $3,000, a person had a net income of $12,000. We're asked for the income BEFORE taxes. This question can be solved by TESTing THE ANSWERS.

Since the income after taxes was $12,000, the income BEFORE taxes MUST be greater than $12,000. Among the first 3 answer choices, let's TEST Answer B first...

Answer B: $13,000

IF.... total income was $13,000
10% tax was paid on ($13,000-$3,000) = (.1)($10,000) = $1,000
Thus, income AFTER tax was $13,000 - $1,000 = $12,000
This is an exact match for what we were told, so this MUST be the answer!

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Re: After paying a 10 percent tax on all income over $3,000, a  [#permalink]

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New post 19 Feb 2018, 23:58
**Hi, this is my first ever post~**

Let the total income = X (before tax)

X - 3000 = the amount being taxed
(x-3000) x 10% = tax paid.

X - tax paid = 12,000

Therefore, the formula is as below:

X - [ (x-3000) *10%] = 12,000

Here, you can solve X which will equal to 13,000
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Re: After paying a 10 percent tax on all income over $3,000, a  [#permalink]

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Re: After paying a 10 percent tax on all income over $3,000, a   [#permalink] 02 Mar 2019, 14:37
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