Forum Home > GMAT > Quantitative > Problem Solving (PS)
Events & Promotions
|
|
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
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Dec 1207:30 AM PST
-08:30 AM PST
Join the conversation to learn more about INSEAD vs LBS
Dec 1310:00 AM EST
-12:00 PM EST
Have you ever wondered how to score a PERFECT 805 on the GMAT? Meet Julia, a banking professional who used the Target Test Prep course to achieve this incredible feat. Julia's story is nothing short of an inspiration.
Dec 1410:00 AM EST
-12:00 PM EST
Think a 100% GMAT Verbal score is out of your reach? Target Test Prep will make you think again! Our course uses techniques such as topical study and spaced repetition to maximize knowledge retention and make studying simple and fun.
Dec 1411:00 AM IST
-01:00 PM IST
Attend this session to learn how to Deconstruct arguments, Pre-Think Author’s Assumptions, and apply Negation Test.- Dec 15
11:00 AM IST
-01:00 PM IST
Attend this free GMAT Algebra Webinar and learn how to master the most challenging Inequalities and Absolute Value problems with ease. - Dec 16
08:00 AM PST
-11:59 PM PST
GMAT Club 12 Days of Christmas is a 4th Annual GMAT Club Winter Competition based on solving questions. This is the Winter GMAT competition on GMAT Club with an amazing opportunity to win over $40,000 worth of prizes! - Dec 17
09:00 AM PST
-10:00 AM PST
Join Manhattan Prep instructor Whitney Garner for a fun—and thorough—review of logic-based (non-math) problems, with a particular emphasis on Data Sufficiency and Two-Parts. - Dec 18
10:00 AM PST
-11:00 AM PST
Here is the essential guide to securing scholarships as an MBA student! In this video, we explore the various types of scholarships available, including need-based and merit-based options.
Updated on: 27 May 2017, 08:53
Originally posted by GMATwizApp on 27 May 2017, 05:53.
Last edited by Bunuel on 27 May 2017, 08:53, edited 1 time in total.
Last edited by Bunuel on 27 May 2017, 08:53, edited 1 time in total.
Renamed the topic.
Kudos
Bookmarks
B
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
65%
(hard)
Question Stats:
63% (02:45) correct
37%
(02:49)
wrong
based on 198
sessions
History
Date
Time
Result
Not Attempted Yet
Anthony, who lives in Zoolandia, pays 20% income tax on his earnings up to Z$30'000, 30% from Z$30'000 to Z$50'000 and 40% above Z$50'000. How much did he earn last year if he paid a 36% effective tax rate?
A) Z$210'000
B) Z$200'000
C) Z$190'000
D) Z$180'000
E) Z$160'000
-----
Find more questions on https://www.gmatwiz.co - Tutor in your pocket
Daily questions in your inbox - Track your progress - Set up study reminders
F: https://www.facebook.com/GMATwiz-4436204 ... page_panel
T: https://www.twitter.com/GMATwiz
E: support@gmatwiz.co
A) Z$210'000
B) Z$200'000
C) Z$190'000
D) Z$180'000
E) Z$160'000
-----
Find more questions on https://www.gmatwiz.co - Tutor in your pocket
Daily questions in your inbox - Track your progress - Set up study reminders
F: https://www.facebook.com/GMATwiz-4436204 ... page_panel
T: https://www.twitter.com/GMATwiz
E: support@gmatwiz.co
27 May 2017, 11:11
Kudos
Bookmarks
On his first $30,000 he pays income tax = 20% of 30000 = $6000
On his next $20,000 (30000 to 50000) he pays income tax = 30% of 20000 = $6000
So on first $50,000 he pays total $12000 income tax
Let his total income be $ x.
Then on remaining income of $(x-50000) - he pays income tax = 40% of (x-50000) = 0.4x - 20000
Total income tax paid = 12000 + 0.4x - 20000 = 0.4x - 8000
This is given as 36% of net income
So 0.4x - 8000 = 36% of x = 0.36x
Solving, we get 0.04x = 8000 or x = $ 200,000
Hence B answer
On his next $20,000 (30000 to 50000) he pays income tax = 30% of 20000 = $6000
So on first $50,000 he pays total $12000 income tax
Let his total income be $ x.
Then on remaining income of $(x-50000) - he pays income tax = 40% of (x-50000) = 0.4x - 20000
Total income tax paid = 12000 + 0.4x - 20000 = 0.4x - 8000
This is given as 36% of net income
So 0.4x - 8000 = 36% of x = 0.36x
Solving, we get 0.04x = 8000 or x = $ 200,000
Hence B answer
General Discussion
27 May 2017, 08:51
Kudos
Bookmarks
GMATwizApp
Anthony, who lives in Zoolandia, pays 20% income tax on his earnings up to Z$30'000, 30% from Z$30'000 to Z$50'000 and 40% above Z$50'000. How much did he earn last year if he paid a 36% effective tax rate?
A) Z$210'000
B) Z$200'000
C) Z$190'000
D) Z$180'000
E) Z$160'000
A) Z$210'000
B) Z$200'000
C) Z$190'000
D) Z$180'000
E) Z$160'000
Used by checking the options -
I. 20% income tax on his earnings up to Z$30'000 = 6000
II. 30% from Z$30'000 to Z$50'000 ( ie 30% of 20000) = 6000
III. 40% above Z$1,50'000 = 60000
Total Tax = 72,000
Total Income = 20,0000
Thus, effective Tax Rate is 36%
Hence, answer must be (B) 36%
