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

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Director
Status: Finally Done. Admitted in Kellogg for 2015 intake
Joined: 25 Jun 2011
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Location: United Kingdom
Concentration: International Business, Strategy
GMAT 1: 730 Q49 V45
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Country X taxes each of its citizens an amount equal to 12 [#permalink]

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15 Mar 2012, 01:03
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80% (02:41) correct 20% (01:42) wrong based on 127 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.
[Reveal] Spoiler: OA

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E.

MGMAT 1 --> 530
MGMAT 2--> 640
MGMAT 3 ---> 610
GMAT ==> 730

Last edited by Bunuel on 15 Mar 2012, 01:59, edited 1 time in total.
Edited the question.
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Re: Country X [#permalink]

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15 Mar 2012, 01:58
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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Re: Country X taxes each of its citizens an amount equal to 12 [#permalink]

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03 May 2012, 11:39
2
KUDOS
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. GMAT Club Legend Joined: 09 Sep 2013 Posts: 15493 Followers: 651 Kudos [?]: 210 [0], given: 0 Re: Country X taxes each of its citizens an amount equal to 12 [#permalink] ### Show Tags 16 Nov 2013, 15:57 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). Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email. _________________ Current Student Joined: 21 Oct 2013 Posts: 193 Location: Germany GMAT 1: 660 Q45 V36 GPA: 3.51 Followers: 1 Kudos [?]: 40 [0], given: 19 Re: Country X [#permalink] ### Show Tags 20 Nov 2013, 05:21 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. Answer: B. 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 Joined: 02 Sep 2009 Posts: 38921 Followers: 7746 Kudos [?]: 106375 [0], given: 11622 Re: Country X [#permalink] ### Show Tags 20 Nov 2013, 05:23 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. Answer: B. 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. _________________ Manager Joined: 12 Jan 2013 Posts: 220 Followers: 5 Kudos [?]: 72 [0], given: 47 Re: Country X taxes each of its citizens an amount equal to 12 [#permalink] ### Show Tags 28 Dec 2013, 11:28 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 GMAT Club Legend Joined: 09 Sep 2013 Posts: 15493 Followers: 651 Kudos [?]: 210 [0], given: 0 Re: Country X taxes each of its citizens an amount equal to 12 [#permalink] ### Show Tags 08 Jul 2016, 05:15 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). Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email. _________________ Re: Country X taxes each of its citizens an amount equal to 12 [#permalink] 08 Jul 2016, 05:15 Similar topics Replies Last post Similar Topics: 6 In a country, 60% of the male citizen and 70% of the female citizen ar 3 10 Mar 2017, 10:27 The income tax in country X is 8% of any income up to$5000. For incom 4 06 Sep 2016, 22:55
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# Country X taxes each of its citizens an amount equal to 12

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