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After paying a 10 percent tax on all income over $3,000, a [#permalink] ### Show Tags 02 May 2012, 20:41 1 This post received KUDOS 3 This post was BOOKMARKED 00:00 Difficulty: 45% (medium) Question Stats: 65% (02:26) correct 35% (01:52) wrong based on 179 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

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

but i dont find any ans over here....
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Re: After paying a 10 percent tax on all income over $3,000, a [#permalink] ### Show Tags 03 May 2012, 07:35 4 This post received KUDOS 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

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

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02 May 2012, 23:43
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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.... 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: 14 Followers: 0 Kudos [?]: 3 [0], given: 8 Re: After paying a 10 percent tax on all income over$3,000, a [#permalink]

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03 May 2012, 00:07
Thanks a ton...i understood what mistake i have done...
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24 Sep 2014, 19:56
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Re: After paying a 10 percent tax on all income over $3,000, a [#permalink] ### Show Tags 24 Sep 2014, 21:51 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

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.

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17 Aug 2016, 22:11
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).

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18 Aug 2016, 05:00
Let x be the income above 3,000 usd.
0,9x=12,000-3,000
0,9x=9,000
x=10,000

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Re: After paying a 10 percent tax on all income over $3,000, a [#permalink] 18 Aug 2016, 05:00 Similar topics Replies Last post Similar Topics: The income tax in country X is 8% of any income up to$5000. For incom 4 06 Sep 2016, 04:03