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Senior Manager  Status: Finally Done. Admitted in Kellogg for 2015 intake
Joined: 25 Jun 2011
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Location: United Kingdom
GMAT 1: 730 Q49 V45
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WE: Information Technology (Consulting)
Country X taxes each of its citizens an amount equal to 12  [#permalink]

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1 00:00

Difficulty:   15% (low)

Question Stats: 88% (02:22) correct 12% (02:48) wrong based on 142 sessions

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Country X taxes each of its citizens an amount equal to 12 percent of the first \$40,000 of income, plus 20 percent of all income in excess of \$40,000. If a citizen of Country X is taxed a total of \$8,000, what is her income?

A. \$40,000
B. \$56,000
C. \$64,000
D. \$66,667
E. \$80,000

Guys - this is how I am trying to solve this algebraically, but its not giving me right answer. Any idea why?

Let the total income = x

Taxes = 0.12 (40000) + 0.2(x-40000) = 8000

Solve for x.

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GMAT ==> 730

Originally posted by enigma123 on 15 Mar 2012, 00:03.
Last edited by Bunuel on 15 Mar 2012, 00:59, edited 1 time in total.
Edited the question.
Math Expert V
Joined: 02 Sep 2009
Posts: 64144

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enigma123 wrote:
Country X taxes each of its citizens an amount equal to 12 percent of the first \$40,000 of income, plus 20 percent of all income in excess of \$40,000. If a citizen of Country X is taxed a total of \$8,000, what is her income?

(A) \$40,000
(B) \$56,000
(C) \$64,000
(D) \$66,667
(E) \$80,000

Guys - this is how I am trying to solve this algebraically, but its not giving me right answer. Any idea why?

Let the total income = x

Taxes = 0.12 (40000) + 0.2(x-40000) = 8000

Solve for x.

Equation is correct, so math must be a problem.

0.12*40,000+0.2*(x-40,000)=8,000 --> 4,800+0.2x-8,000=8,000 --> 0.2x=11,200 --> x=56,000.

Hope it helps.
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Posts: 35
Re: Country X taxes each of its citizens an amount equal to 12  [#permalink]

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2
enigma123 wrote:
Country X taxes each of its citizens an amount equal to 12 percent of the first \$40,000 of income, plus 20 percent of all income in excess of \$40,000. If a citizen of Country X is taxed a total of \$8,000, what is her income?

A. \$40,000
B. \$56,000
C. \$64,000
D. \$66,667
E. \$80,000

Guys - this is how I am trying to solve this algebraically, but its not giving me right answer. Any idea why?

Let the total income = x

Taxes = 0.12 (40000) + 0.2(x-40000) = 8000

Solve for x.

Guys a simple way to crack problems like this

so for first 40000\$ the tax rate is 12% so 40000*12/100=4800 so the total tax payable is 8000 so if we deduct 4800 from 8000 we get 3200 which is 20% of the remaining so with this we can set the equation like this

20% 3200
100% x

By cross multiplication we get .2x=3200*1 =>x=3200/.2 => 32000/2(multiplying numerator and denominator with 10 to get rid .2 in denominator ) so we get 16000\$ so total income before tax was 40000\$+16000\$=56000\$

Ans option is B

if You are satisfied give me +1 kudos.
Manager  Joined: 21 Oct 2013
Posts: 173
Location: Germany
GMAT 1: 660 Q45 V36
GPA: 3.51

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Bunuel wrote:
enigma123 wrote:
Country X taxes each of its citizens an amount equal to 12 percent of the first \$40,000 of income, plus 20 percent of all income in excess of \$40,000. If a citizen of Country X is taxed a total of \$8,000, what is her income?

(A) \$40,000
(B) \$56,000
(C) \$64,000
(D) \$66,667
(E) \$80,000

Guys - this is how I am trying to solve this algebraically, but its not giving me right answer. Any idea why?

Let the total income = x

Taxes = 0.12 (40000) + 0.2(x-40000) = 8000

Solve for x.

Equation is correct, so math must be a problem.

0.12*40,000+0.2*(x-40,000)=8,000 --> 4,800+0.2x-8,000=8,000 --> 0.2x=11,200 --> x=56,000.

Hope it helps.

I Bunuel, I usually solve like this:

0.12 * 40,000 + 0.2 * x

x is the income above 40,000

0.12 * 40,000 = 4800 ==> 8000 - 4800 = 3200

so 0.2x=3200, x = 16,000

thus total income = 40,000+16,000=56,000

Could there be trouble in other problems? Or can I use my approach as well? I see that if I do it like you I get the total income right away, but for me it's easier to do it the other way (it's just clearer to me).

Thanks!
Math Expert V
Joined: 02 Sep 2009
Posts: 64144

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unceldolan wrote:
Bunuel wrote:
enigma123 wrote:
Country X taxes each of its citizens an amount equal to 12 percent of the first \$40,000 of income, plus 20 percent of all income in excess of \$40,000. If a citizen of Country X is taxed a total of \$8,000, what is her income?

(A) \$40,000
(B) \$56,000
(C) \$64,000
(D) \$66,667
(E) \$80,000

Guys - this is how I am trying to solve this algebraically, but its not giving me right answer. Any idea why?

Let the total income = x

Taxes = 0.12 (40000) + 0.2(x-40000) = 8000

Solve for x.

Equation is correct, so math must be a problem.

0.12*40,000+0.2*(x-40,000)=8,000 --> 4,800+0.2x-8,000=8,000 --> 0.2x=11,200 --> x=56,000.

Hope it helps.

I Bunuel, I usually solve like this:

0.12 * 40,000 + 0.2 * x

x is the income above 40,000

0.12 * 40,000 = 4800 ==> 8000 - 4800 = 3200

so 0.2x=3200, x = 16,000

thus total income = 40,000+16,000=56,000

Could there be trouble in other problems? Or can I use my approach as well? I see that if I do it like you I get the total income right away, but for me it's easier to do it the other way (it's just clearer to me).

Thanks!

I see nothing wrong with your approach.
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Posts: 137
Re: Country X taxes each of its citizens an amount equal to 12  [#permalink]

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enigma123 wrote:
Country X taxes each of its citizens an amount equal to 12 percent of the first \$40,000 of income, plus 20 percent of all income in excess of \$40,000. If a citizen of Country X is taxed a total of \$8,000, what is her income?

A. \$40,000
B. \$56,000
C. \$64,000
D. \$66,667
E. \$80,000

Guys - this is how I am trying to solve this algebraically, but its not giving me right answer. Any idea why?

Let the total income = x

Taxes = 0.12 (40000) + 0.2(x-40000) = 8000

Solve for x.

40000/100 = 400 --> 400*12 = 4800

8000 - 4800 = 3200 ---> (20/100)x = 3200 ---> x = 16000.. 16000 is the excess salary over 40000.. So 40000 + 160000 = 56000
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Posts: 14984
Re: Country X taxes each of its citizens an amount equal to 12  [#permalink]

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_________________ Re: Country X taxes each of its citizens an amount equal to 12   [#permalink] 08 Jul 2016, 04:15

# Country X taxes each of its citizens an amount equal to 12  