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# If the amount of federal estate tax due on an estate valued at $1.35 SORT BY: Tags: Show Tags Hide Tags Board of Directors Joined: 01 Sep 2010 Posts: 4422 Own Kudos [?]: 33060 [87] Given Kudos: 4477 Most Helpful Reply Senior SC Moderator Joined: 22 May 2016 Posts: 5330 Own Kudos [?]: 35561 [29] Given Kudos: 9464 Target Test Prep Representative Joined: 04 Mar 2011 Status:Head GMAT Instructor Affiliations: Target Test Prep Posts: 3042 Own Kudos [?]: 6353 [8] Given Kudos: 1646 General Discussion Manager Joined: 07 Aug 2017 Posts: 67 Own Kudos [?]: 188 [0] Given Kudos: 23 Location: India GPA: 4 WE:Information Technology (Consulting) Re: If the amount of federal estate tax due on an estate valued at$ 1.35 [#permalink]
Value of estate = $$1.35*10^6$$
Tax = $$437000+0.43(0.1*10^6)$$ = $$480000$$

Percentage of tax due = $$\frac{480000}{(1.35*10^6)}*100$$ ≈ $$35$$%
Intern
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Re: If the amount of federal estate tax due on an estate valued at $1.35 [#permalink] 2 Kudos Does anyone have tips for estimating? My calculations brought me to 480000/1350000 --> 48/135 but then I froze I was stuck between 30% and 40%. As I started typing this I realized I could quickly calculate 40% of the denominator to help me ballpark. Any other techniques for estimation? Intern Joined: 13 May 2018 Posts: 40 Own Kudos [?]: 43 [0] Given Kudos: 453 Re: If the amount of federal estate tax due on an estate valued at$ 1.35 [#permalink]
carcass wrote:
If the amount of federal estate tax due on an estate valued at $1.35 million is$ 437,000 plus 43 percent of the value of the estate in excess of $1.25 million, then the federal tax due is approximately what percent of the value of the estate? A. 30% B. 35% C. 40% D. 45% E. 50% it's easier to calculate this question in millions. Hence 1.35 million X x%= 0.437 million+ 43% of (1.35 million-1.25 million) 1.35 million X x% =0.44 million+ 43% of (0.10 million) 1.35 million X x% = 0.44 million + some small value (in millions) x= 32.xxx% (should be more than 32% since we didnot calculate 43% of 0.10 million) Closest answer is 35% hence Intern Joined: 20 May 2019 Posts: 19 Own Kudos [?]: 10 [2] Given Kudos: 7 Re: If the amount of federal estate tax due on an estate valued at$ 1.35 [#permalink]
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I think the major hiccup in solving this question is the 480,000/1350000 figure. We simplify it to 48/135, but this seems like a very inconvenient fraction. Here's what I do sometimes to solve such complex fractions.

Round these values off to the closest convenient values, which in this case is 50/150, which is 33.33%. Since we increased the denominator significantly, the value has to be greater than 30%. Also, to arrive at 40%, we'd need the fraction to be 40/100 or 50/125. Clearly, the value lies between 30% and 40%, which is 35%.
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If the amount of federal estate tax due on an estate valued at $1.35 [#permalink] hvelas93 wrote: Does anyone have tips for estimating? My calculations brought me to 480000/1350000 --> 48/135 but then I froze I was stuck between 30% and 40%. As I started typing this I realized I could quickly calculate 40% of the denominator to help me ballpark. Any other techniques for estimation? hvelas93 Yes, use the answer choices to determine which is the correct answer choice, and use percentages of 10 to help do the math quickly: The total estate is 1.35 million, you can easily find 30% and 40% because it's 3*10% and 4*10%. 10% of 1.35 million is 135,000 30% of 1.35 million is 405,000 (too small) 40% of 1.35 million is 540,000 (too large) Fyi: if you know what 10% is (135,000), you can divide that value by 2 to find 5% of 1.35 million (67,500) So you can add 405,000 + 67,500 = 472,500 And you can take it even further and divided 135,000 by 10 to find 1% = (13,500) That is especially useful when you're trying to find percentages that are a pain to divide via long division, such as 13% of X, or 53% of Y , and that rounding can easily give you the wrong answer choice of the answers are very close together Director Joined: 09 Jan 2020 Posts: 961 Own Kudos [?]: 226 [0] Given Kudos: 434 Location: United States Re: If the amount of federal estate tax due on an estate valued at$ 1.35 [#permalink]
If the amount of federal estate tax due on an estate valued at $1.35 million is$ 437,000 plus 43 percent of the value of the estate in excess of $1.25 million, then the federal tax due is approximately what percent of the value of the estate?$437,000 + $43,000 = 480,000 480,000 / 1,350,000 = 48 / 135 1/10 of 135 = 13.5 48 is approximately 3.5 * 13.5 Therefore the tax due is approximately 35%. Answer is B. Intern Joined: 13 Jul 2018 Posts: 37 Own Kudos [?]: 14 [0] Given Kudos: 163 GMAT 1: 660 Q46 V35 Re: If the amount of federal estate tax due on an estate valued at$ 1.35 [#permalink]
carcass wrote:
If the amount of federal estate tax due on an estate valued at $1.35 million is$ 437,000 plus 43 percent of the value of the estate in excess of $1.25 million, then the federal tax due is approximately what percent of the value of the estate? A. 30% B. 35% C. 40% D. 45% E. 50% i am pretty sure many of you have conveniently have arrived at 48/135 fraction, here is my approach I use to handle tough fraction to percent quetions: 48/135 = 16/45 or we can right is as 32/90 = 32+3.2/90+9 = 35.2/99 ~ 35% Manager Joined: 19 Dec 2020 Posts: 161 Own Kudos [?]: 39 [0] Given Kudos: 316 Re: If the amount of federal estate tax due on an estate valued at$ 1.35 [#permalink]
It's not the question, it's the values that really messes with you in question like these. had it been simpler values this is a sub-600.

tax= 437k + 43% of (1.35-1.25) Mil $<<< let this be A total value is 1.35 Mil$ << Let this be B

question is:- A is what % of B. easy, only if the values weren't a travesty.

can someone share how to simplify such values when we do have the leverage to approximate, like in this question. Thanks
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Re: If the amount of federal estate tax due on an estate valued at $1.35 [#permalink] GMAT Problem Solving - Looking for the correct answer CHOICE (not the EXACT answer) Manager Joined: 28 Dec 2020 Posts: 54 Own Kudos [?]: 44 [1] Given Kudos: 26 Location: United States If the amount of federal estate tax due on an estate valued at$ 1.35 [#permalink]
1
Kudos
The second I started trying to solve 48/135 I realized it was going to be difficult.
At this point, I did 10% of 135, which I can quickly calculate to be 13.5
Then I know that 30% is 3*10% = 13.5 * 3 = 40.5... eh, that is pretty far from 48
Then I try 35%, which is 30% + 5%, which is 40.5 + .5(13.5) = 41.5 + 6.75 = 47.25, wow that is pretty close to 48; 35% is my answer.

Note, on the real exam, I discourage dealing with the .25 and even sometimes the .5. Oftentimes, they are not needed and they take additional time to deal with.
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Re: If the amount of federal estate tax due on an estate valued at $1.35 [#permalink] 1 Kudos Expert Reply Video solution from Quant Reasoning: Subscribe for more: https://www.youtube.com/QuantReasoning? ... irmation=1 Intern Joined: 27 Jul 2021 Posts: 6 Own Kudos [?]: 1 [0] Given Kudos: 28 Location: India Re: If the amount of federal estate tax due on an estate valued at$ 1.35 [#permalink]
rounakkedia172 wrote:
carcass wrote:
If the amount of federal estate tax due on an estate valued at $1.35 million is$ 437,000 plus 43 percent of the value of the estate in excess of $1.25 million, then the federal tax due is approximately what percent of the value of the estate? A. 30% B. 35% C. 40% D. 45% E. 50% i am pretty sure many of you have conveniently have arrived at 48/135 fraction, here is my approach I use to handle tough fraction to percent quetions: 48/135 = 16/45 or we can right is as 32/90 = 32+3.2/90+9 = 35.2/99 ~ 35% How did you add 3.2 to the num? Could you explain pls Board of Directors Joined: 11 Jun 2011 Status:QA & VA Forum Moderator Posts: 6069 Own Kudos [?]: 4704 [0] Given Kudos: 463 Location: India GPA: 3.5 WE:Business Development (Commercial Banking) Re: If the amount of federal estate tax due on an estate valued at$ 1.35 [#permalink]
carcass wrote:
If the amount of federal estate tax due on an estate valued at $1.35 million is$ 437,000 plus 43 percent of the value of the estate in excess of $1.25 million, then the federal tax due is approximately what percent of the value of the estate? A. 30% B. 35% C. 40% D. 45% E. 50% $$T = (1.35 - 1.25)*10^5*\frac{43}{100} + 437000 => 480000$$ Quote: the federal tax due is approximately what percent of the value of the estate $$=\frac{480000}{1350000}*100$$ $$= 35$$%, Answer will be (B) Intern Joined: 22 Dec 2023 Posts: 16 Own Kudos [?]: 6 [0] Given Kudos: 43 Re: If the amount of federal estate tax due on an estate valued at$ 1.35 [#permalink]
hvelas93 wrote:
Does anyone have tips for estimating? My calculations brought me to [url=tel:480000/1350000]480000/1350000[/url] --> 48/135 but then I froze I was stuck between 30% and 40%. As I started typing this I realized I could quickly calculate 40% of the denominator to help me ballpark. Any other techniques for estimation?

­
10% of 135 is 13.5

13.5*4 = 54 too much
13.5*3 = 40.xx too little

so has to be 35%
Re: If the amount of federal estate tax due on an estate valued at \$ 1.35 [#permalink]
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