Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized for You

we will pick new questions that match your level based on your Timer History

Track Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

It appears that you are browsing the GMAT Club forum unregistered!

Signing up is free, quick, and confidential.
Join other 500,000 members and get the full benefits of GMAT Club

Registration gives you:

Tests

Take 11 tests and quizzes from GMAT Club and leading GMAT prep companies such as Manhattan GMAT,
Knewton, and others. All are free for GMAT Club members.

Applicant Stats

View detailed applicant stats such as GPA, GMAT score, work experience, location, application
status, and more

Books/Downloads

Download thousands of study notes,
question collections, GMAT Club’s
Grammar and Math books.
All are free!

Thank you for using the timer!
We noticed you are actually not timing your practice. Click the START button first next time you use the timer.
There are many benefits to timing your practice, including:

If the value of a piece of property decreases by 10 percent [#permalink]

Show Tags

08 Aug 2007, 07:22

00:00

A

B

C

D

E

Difficulty:

25% (medium)

Question Stats:

68% (01:05) correct
32% (01:18) wrong based on 100 sessions

HideShow timer Statistics

If the value of a piece of property decreases by 10 percent while the tax rate on the property increases by 10 percent, what is the effect on the taxes?

A. Taxes increase by 10 percent B. Taxes increase by 1 percent C. There is no change in taxes D. Taxes decrease by 1 percent E. Taxes decrease by 10 percent

it's hard to explain, but the 10% increase isn't referring to an additional 10% of tax on the houses but an increase of 10% of the 10%.

.1 x 1.1 = .11 10% x 1.1 = 11%

then I just plugged in numbers

100,000 x .1 = 10,000 90,000 x .11 = 9,900

decrease of 1%

Still don't understand the wording too well; can someone elaborate on this? Thanks!

Lets say value of the property is $V and tax on that $V is T% . Hence the tax amount on the $V is = $VT now value is decreased by 10 % ( 0.9V) and tax increased by 10% ( 1.1 T) , the new tax amount is 0.9V*1.1T = 0.99VT

Hence new tax amount decreases by 0.01VT ( i.e 1% the original)
_________________

Re: If the value of a piece of property decreases by 10 percent [#permalink]

Show Tags

12 May 2013, 22:13

johngrg wrote:

If the value of a piece of property decreases by 10 percent while the tax rate on the property increases by 10 percent, what is the effect on the taxes?

A. Taxes increase by 10 percent B. Taxes increase by 1 percent C. There is no change in taxes D. Taxes decrease by 1 percent E. Taxes decrease by 10 percent

Initial value =100 ,tax rate = 100%. Thus, the tax to be paid = 100. After the required change, the new value = 90 and the new tax rate = 110%. The new tax amount to be paid = 99. Change in tax paid = 1% decrease. D.
_________________

We’ve given one of our favorite features a boost! You can now manage your profile photo, or avatar , right on WordPress.com. This avatar, powered by a service...

Sometimes it’s the extra touches that make all the difference; on your website, that’s the photos and video that give your content life. You asked for streamlined access...

A lot has been written recently about the big five technology giants (Microsoft, Google, Amazon, Apple, and Facebook) that dominate the technology sector. There are fears about the...

Post today is short and sweet for my MBA batchmates! We survived Foundations term, and tomorrow's the start of our Term 1! I'm sharing my pre-MBA notes...