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# In 2001, John paid 5 percent of his taxable income as taxes. In 2002,

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Math Expert
Joined: 02 Sep 2009
Posts: 58335
In 2001, John paid 5 percent of his taxable income as taxes. In 2002,  [#permalink]

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16 Oct 2018, 01:45
00:00

Difficulty:

25% (medium)

Question Stats:

76% (01:04) correct 24% (00:44) wrong based on 52 sessions

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In 2001, John paid 5 percent of his taxable income as taxes. In 2002, what percent of John’s taxable income did he pay as taxes?

(1) In 2001, John’s taxable income was \$40,000.
(2) In 2002 John paid \$250 more in state tax than he did in 2001.

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Re: In 2001, John paid 5 percent of his taxable income as taxes. In 2002,  [#permalink]

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16 Oct 2018, 02:50
In 2001, John paid 5 percent of his taxable income as taxes. In 2002, what percent of John’s taxable income did he pay as taxes?

(1) In 2001, John’s taxable income was \$40,000.
We know nothing about how much John earned or paid as taxes in 2002. INSUFFICIENT

(2) In 2002 John paid \$250 more in state tax than he did in 2001.
\$250 more than what? INSUFFICIENT

TOGETHER
2001: 5% of taxable income was paid in taxes.
2001: Taxable income is \$4000
2001: Tax paid is \$200

2002: Tax paid is \$250 more than last year
2002: Tax paid is \$450

As a percentage of of his taxable income? We do not know. We cannot assume that the tax rate remained the same which will make the answer 5%

Therefore, E.
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Re: In 2001, John paid 5 percent of his taxable income as taxes. In 2002,  [#permalink]

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17 Oct 2018, 00:37
In 2001, John paid 5 percent of his taxable income as taxes. In 2002, what percent of John’s taxable income did he pay as taxes?

(1) In 2001, John’s taxable income was \$40,000.
(2) In 2002 John paid \$250 more in state tax than he did in 2001.

Statement 1: 5% of 40000 = 200. However this info is sufficient to answer the question. AD/BCE
Statement 2: Paid 250 more in state tax than 2001 - Insufficient. BCE
Statement 1 + 2: Insufficient

Hence E
Re: In 2001, John paid 5 percent of his taxable income as taxes. In 2002,   [#permalink] 17 Oct 2018, 00:37
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