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Country C imposes a two-tiered tax on imported cars: the first tier im

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Country C imposes a two-tiered tax on imported cars: the first tier im  [#permalink]

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New post 29 Jul 2015, 11:16
3
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A
B
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E

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  25% (medium)

Question Stats:

75% (02:30) correct 25% (01:43) wrong based on 85 sessions

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Country C imposes a two-tiered tax on imported cars: the first tier imposes a tax of 12% of the car's price up to a certain price level. If the car's price is higher than the first tier's level, the tax on the portion of the price that exceeds this value is 8%. If Ron imported a $14,000 imported car and ended up paying $1440 in taxes, what is the first tier's price level?

A. $1600
B. $6000
C. $6050
D. $7050
E. $8000

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Re: Country C imposes a two-tiered tax on imported cars: the first tier im  [#permalink]

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New post 29 Jul 2015, 11:29
reto wrote:
Country C imposes a two-tiered tax on imported cars: the first tier imposes a tax of 12% of the car's price up to a certain price level. If the car's price is higher than the first tier's level, the tax on the portion of the price that exceeds this value is 8%. If Ron imported a $14,000 imported car and ended up paying $1440 in taxes, what is the first tier's price level?

A. $1600
B. $6000
C. $6050
D. $7050
E. $8000





Let T be the tier price, P be total price = 14000

Per the given conditions:

0.12T + 0.08(P-T) = 1440 ----> T= 8000. E is the correct answer.
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Re: Country C imposes a two-tiered tax on imported cars: the first tier im  [#permalink]

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New post 29 Jul 2015, 15:43
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reto wrote:
Country C imposes a two-tiered tax on imported cars: the first tier imposes a tax of 12% of the car's price up to a certain price level. If the car's price is higher than the first tier's level, the tax on the portion of the price that exceeds this value is 8%. If Ron imported a $14,000 imported car and ended up paying $1440 in taxes, what is the first tier's price level?

A. $1600
B. $6000
C. $6050
D. $7050
E. $8000



The $1440 in taxes indicates the weight of 12% is more than 8%, since taxes of $1400 is of equal weight, and therefore A, B, and C are out. Now, with two of the remaining choices, test the easier one, E. $8000.

\(8000 * \frac{12}{100} + (14000 - 8000) \frac{8}{100}= 960 + 480 = 1440.\)
IMO A.
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Re: Country C imposes a two-tiered tax on imported cars: the first tier im  [#permalink]

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New post 14 Jul 2018, 14:56
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Re: Country C imposes a two-tiered tax on imported cars: the first tier im &nbs [#permalink] 14 Jul 2018, 14:56
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