If the personal income tax rate is lowered from : GMAT Problem Solving (PS)
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# If the personal income tax rate is lowered from

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Intern
Joined: 25 Jan 2013
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If the personal income tax rate is lowered from [#permalink]

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20 Feb 2013, 21:07
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25% (medium)

Question Stats:

86% (02:09) correct 14% (01:44) wrong based on 29 sessions

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If the personal income tax rate is lowered from 40% to 33%, what is the differential savings for a tax payer having an annual income before tax to the tune of $45000? A.$3500
B. $5000 C.$3150
D. $7000 E.$10000
[Reveal] Spoiler: OA
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Location: India
Concentration: Strategy, General Management
Schools: Olin - Wash U - Class of 2015
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Re: If the personal income tax rate is lowered from [#permalink]

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20 Feb 2013, 23:45
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KUDOS
antoxavier wrote:
If the personal income tax rate is lowered from 40% to 33%, what is the differential savings for a tax payer having an annual income before tax to the tune of $45000? A.$3500
B. $5000 C.$3150
D. $7000 E.$10000

Saving = (40-33)% of 45000 = 3150.
Ans C it is.
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Re: If the personal income tax rate is lowered from   [#permalink] 20 Feb 2013, 23:45
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