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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% (02:27) correct 35% (01:52) wrong based on 178 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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02 May 2012, 20:47
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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] ### Show Tags 02 May 2012, 23:43 1 This post received KUDOS Expert's post 1 This post was BOOKMARKED 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....

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.

Hope it's clear.
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03 May 2012, 07:35
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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$=13000$

Hope it short and clear

if satisfied give me +1 kudos.
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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