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After paying a 10 percent tax on all income over $3,000, a  post reply Question banks Downloads My Bookmarks Reviews Important topics Author Message Manager Joined: 05 Sep 2007 Posts: 144 Location: New York After paying a 10 percent tax on all income over$3,000, a [#permalink]

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11 Mar 2008, 16:20
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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 Director Joined: 10 Sep 2007 Posts: 938 Re: PS: % [#permalink] Show Tags 11 Mar 2008, 16:49 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? Suppose person income is 3000 + X. On 3000 he does pay any tax. On X is pays 10 percent tax, X*10/100 = 0.1X Remaining Amount = X - 0.1X = 0.9X Net Income = 3000 + 0.9X = 12000 => X = 10000 So total income before tax = 3000 + 10000 = 13000 Answer B. SVP Joined: 28 Dec 2005 Posts: 1558 Re: PS: % [#permalink] Show Tags 11 Mar 2008, 17:39 whered i go wrong here: net = gross - taxed amount, x=gross amount 12,000=x-(x-3000)(0.1) 9000 = 0.9*gross gross = 10,000 i know that answer is wrong because he cant have a net amount greater than his gross, but what am i doing wrong in my initial equation ? Manager Joined: 12 Oct 2007 Posts: 57 Re: PS: % [#permalink] Show Tags 11 Mar 2008, 17:55 pmenon wrote: whered i go wrong here: net = gross - taxed amount, x=gross amount 12,000=x-(x-3000)(0.1) 9000 = 0.9*gross gross = 10,000 i know that answer is wrong because he cant have a net amount greater than his gross, but what am i doing wrong in my initial equation ? I did the exact same thing but I forgot to add the 10,000 + 3000 that wasn't taxable. very tricky. CEO Joined: 29 Mar 2007 Posts: 2559 Re: PS: % [#permalink] Show Tags 11 Mar 2008, 20:44 el1981 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+.9x ---> 9000=.9x--> 10000

Re: PS: %   [#permalink] 11 Mar 2008, 20:44
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