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To boost sales around the holidays, the government of the fictional co

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To boost sales around the holidays, the government of the fictional co  [#permalink]

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New post 12 Feb 2019, 00:42
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Question Stats:

92% (01:15) correct 8% (01:00) wrong based on 26 sessions

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To boost sales around the holidays, the government of the fictional country of Capitalitamia dictates that a citizen may purchase goods up to a total value of $1,000 tax-free but must pay a 7% tax on the portion of the total value in excess of $1,000. How much tax must be paid by a citizen who purchases goods with a total value of $1,220?

(A) $14.00
(B) $15.40
(C) $54.60
(D) $70.00
(E) $87.40
Spoiler: OA

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Re: To boost sales around the holidays, the government of the fictional co  [#permalink]

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New post 12 Feb 2019, 00:47
Bunuel wrote:
To boost sales around the holidays, the government of the fictional country of Capitalitamia dictates that a citizen may purchase goods up to a total value of $1,000 tax-free but must pay a 7% tax on the portion of the total value in excess of $1,000. How much tax must be paid by a citizen who purchases goods with a total value of $1,220?

(A) $14.00
(B) $15.40
(C) $54.60
(D) $70.00
(E) $87.40



tax must be imposed on the amount excess of 1000.

Total spending = 1220.

so, ( 1220 - 10000 = 220 = taxable amount .

220 * 7/100 = 15.40.

B is the correct answer.
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Re: To boost sales around the holidays, the government of the fictional co  [#permalink]

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New post 12 Feb 2019, 05:10
Bunuel wrote:
To boost sales around the holidays, the government of the fictional country of Capitalitamia dictates that a citizen may purchase goods up to a total value of $1,000 tax-free but must pay a 7% tax on the portion of the total value in excess of $1,000. How much tax must be paid by a citizen who purchases goods with a total value of $1,220?

(B) $15.40



Value above 1000 will have a tax of 7%, 1220 - 1000 = $ 220

$220 will be taxed @ 7%

$15.40
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Re: To boost sales around the holidays, the government of the fictional co  [#permalink]

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New post 13 Feb 2019, 19:43
Bunuel wrote:
To boost sales around the holidays, the government of the fictional country of Capitalitamia dictates that a citizen may purchase goods up to a total value of $1,000 tax-free but must pay a 7% tax on the portion of the total value in excess of $1,000. How much tax must be paid by a citizen who purchases goods with a total value of $1,220?

(A) $14.00
(B) $15.40
(C) $54.60
(D) $70.00
(E) $87.40


The total tax paid on goods valued $1,220 is (1,220 - 1,000) x 0.07 = 220 x 0.07 = $15.40.

Answer: B
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Re: To boost sales around the holidays, the government of the fictional co   [#permalink] 13 Feb 2019, 19:43
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