Summer is Coming! Join the Game of Timers Competition to Win Epic Prizes. Registration is Open. Game starts Mon July 1st.

 It is currently 23 Jul 2019, 04:18

### 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

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

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

### Hide Tags

Intern
Joined: 12 Oct 2011
Posts: 12
After paying a 10 percent tax on all income over \$3,000, a  [#permalink]

### Show Tags

02 May 2012, 21:41
2
12
00:00

Difficulty:

55% (hard)

Question Stats:

64% (01:49) correct 36% (01:53) wrong based on 305 sessions

### HideShow timer Statistics

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

Project PS Butler : Question #64

Subscribe to get Daily Email - Click Here | Subscribe via RSS - RSS
##### Most Helpful Community Reply
Intern
Joined: 13 Nov 2010
Posts: 37
Re: After paying a 10 percent tax on all income over \$3,000, a  [#permalink]

### Show Tags

03 May 2012, 08:35
11
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

Hope it short and clear

if satisfied give me +1 kudos.
##### General Discussion
SVP
Status: Top MBA Admissions Consultant
Joined: 24 Jul 2011
Posts: 1829
GMAT 1: 780 Q51 V48
GRE 1: Q800 V740
Re: After paying a 10 percent tax on all income over \$3,000, a  [#permalink]

### Show Tags

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)
_________________
GyanOne [www.gyanone.com]| Premium MBA and MiM Admissions Consulting

Awesome Work | Honest Advise | Outstanding Results

Reach Out, Lets chat!
Email: info at gyanone dot com | +91 98998 31738 | Skype: gyanone.services
Math Expert
Joined: 02 Sep 2009
Posts: 56376
Re: After paying a 10 percent tax on all income over \$3,000, a  [#permalink]

### Show Tags

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.
_________________
Intern
Joined: 12 Oct 2011
Posts: 12
Re: After paying a 10 percent tax on all income over \$3,000, a  [#permalink]

### Show Tags

03 May 2012, 01:07
Thanks a ton...i understood what mistake i have done...
SVP
Status: The Best Or Nothing
Joined: 27 Dec 2012
Posts: 1787
Location: India
Concentration: General Management, Technology
WE: Information Technology (Computer Software)
Re: After paying a 10 percent tax on all income over \$3,000, a  [#permalink]

### Show Tags

28 Feb 2013, 23:29
3000 + x - 10x/100 = 12000
Solving this, we get ans = B (10000)
_________________
Kindly press "+1 Kudos" to appreciate
Veritas Prep GMAT Instructor
Joined: 16 Oct 2010
Posts: 9457
Location: Pune, India
Re: After paying a 10 percent tax on all income over \$3,000, a  [#permalink]

### Show Tags

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)
_________________
Karishma
Veritas Prep GMAT Instructor

Learn more about how Veritas Prep can help you achieve a great GMAT score by checking out their GMAT Prep Options >
Current Student
Joined: 12 Aug 2015
Posts: 2609
Schools: Boston U '20 (M)
GRE 1: Q169 V154
Re: After paying a 10 percent tax on all income over \$3,000, a  [#permalink]

### Show Tags

18 Aug 2016, 04:30
1
awesome Question
Here is my approach =>
Let the original income over 3k be x
hence total income after deduction => 3k+x[1-10/100] =12k
hence x= 10k
so the total orginal income => 3k+10k = 13k
SMASH that B
_________________
Manager
Joined: 15 Mar 2015
Posts: 109
Re: After paying a 10 percent tax on all income over \$3,000, a  [#permalink]

### Show Tags

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.
_________________
I love being wrong. An incorrect answer offers an extraordinary opportunity to improve.
Target Test Prep Representative
Status: Head GMAT Instructor
Affiliations: Target Test Prep
Joined: 04 Mar 2011
Posts: 2821
Re: After paying a 10 percent tax on all income over \$3,000, a  [#permalink]

### Show Tags

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
_________________

# Jeffrey Miller

Head of GMAT Instruction

Jeff@TargetTestPrep.com
122 Reviews

5-star rated online GMAT quant
self study course

See why Target Test Prep is the top rated GMAT quant course on GMAT Club. Read Our Reviews

If you find one of my posts helpful, please take a moment to click on the "Kudos" button.

EMPOWERgmat Instructor
Status: GMAT Assassin/Co-Founder
Affiliations: EMPOWERgmat
Joined: 19 Dec 2014
Posts: 14619
Location: United States (CA)
GMAT 1: 800 Q51 V49
GRE 1: Q170 V170
Re: After paying a 10 percent tax on all income over \$3,000, a  [#permalink]

### Show Tags

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!

Final Answer:

GMAT assassins aren't born, they're made,
Rich
_________________
760+: Learn What GMAT Assassins Do to Score at the Highest Levels
Contact Rich at: Rich.C@empowergmat.com

*****Select EMPOWERgmat Courses now include ALL 6 Official GMAC CATs!*****

# Rich Cohen

Co-Founder & GMAT Assassin

Special Offer: Save \$75 + GMAT Club Tests Free
Official GMAT Exam Packs + 70 Pt. Improvement Guarantee
www.empowergmat.com/
Intern
Joined: 11 Jan 2018
Posts: 19
Re: After paying a 10 percent tax on all income over \$3,000, a  [#permalink]

### Show Tags

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
Non-Human User
Joined: 09 Sep 2013
Posts: 11749
Re: After paying a 10 percent tax on all income over \$3,000, a  [#permalink]

### Show Tags

02 Mar 2019, 14:37
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.
_________________
Re: After paying a 10 percent tax on all income over \$3,000, a   [#permalink] 02 Mar 2019, 14:37
Display posts from previous: Sort by

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

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

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