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In country X a returning tourist must pay 8 percent tax on the first $

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In country X a returning tourist must pay 8 percent tax on the first $ [#permalink]

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New post 21 Dec 2017, 21:27
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In country X a returning tourist must pay 8 percent tax on the first $400 or less worth of imported goods. If the total value is in excess of $400 he must also pay a 10 percent tax on the portion of the total value in excess of 400. If a returning tourist pays $98 in tax, what is the value of imported goods he is bringing into the country?

A. $880
B. $900
C. $980
D. $1060
E. $1380
[Reveal] Spoiler: OA

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Re: In country X a returning tourist must pay 8 percent tax on the first $ [#permalink]

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New post 22 Dec 2017, 05:40
As the total tax payed is more than 0.08*400 = 32, the value of goods is more than 400. He payed 98 which is 66 more than 32. The extra 66 is 0.1 of 660. So the excess of 400 is 660. Total value is 1060


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Re: In country X a returning tourist must pay 8 percent tax on the first $ [#permalink]

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New post 23 Dec 2017, 08:44
Bunuel wrote:
In country X a returning tourist must pay 8 percent tax on the first $400 or less worth of imported goods. If the total value is in excess of $400 he must also pay a 10 percent tax on the portion of the total value in excess of 400. If a returning tourist pays $98 in tax, what is the value of imported goods he is bringing into the country?

A. $880
B. $900
C. $980
D. $1060
E. $1380


\(Value=x\) and \(Tax=98\)

\(98=(400*0.08)+[(x-400)*0.10]\)
\(98= (32) + [(x-400)*0.1]\)
\(98 = 32 + [(x-400)*0.1]\)
\(66 = (x-400)*0.1\)
\(660=x-400\)

\(x=1060\)

(D) is the answer.
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Re: In country X a returning tourist must pay 8 percent tax on the first $ [#permalink]

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New post 23 Dec 2017, 11:26
Bunuel wrote:
In country X a returning tourist must pay 8 percent tax on the first $400 or less worth of imported goods. If the total value is in excess of $400 he must also pay a 10 percent tax on the portion of the total value in excess of 400. If a returning tourist pays $98 in tax, what is the value of imported goods he is bringing into the country?

A. $880
B. $900
C. $980
D. $1060
E. $1380


If the amount on which the tax is paid is x, the following equation will be formed:

.08(400) + .1(x-400) = 98
32 + 0.1(x-400) = 98
32 + 0.1x - 40 = 98
0.1x = 98 + 8 = 106 => x = 1060

Therefore, the value of imported goods the tourist brings into the country is 1060(Option D)

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Re: In country X a returning tourist must pay 8 percent tax on the first $   [#permalink] 23 Dec 2017, 11:26
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