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# To determine her state income tax last year, Elena computed 5 percent

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Re: To determine her state income tax last year, Elena computed 5 percent [#permalink]
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Bunuel wrote:
To determine her state income tax last year, Elena computed 5 percent of her gross income, rounded the resulting figure down to the nearest \$100, and subtracted \$50 for each dependent that she claimed. If Elena's gross income was \$34,500 and she claimed 2 dependents, how much did she determine her state income tax to be?

A. \$1,600
B. \$1,625
C. \$1,650
D. \$1,675
E. \$1,700

Elena computed 5 percent of her gross income, rounded the resulting figure down to the nearest \$100....
10% of \$34,500 = \$3450
So, 5% of \$34,500 = \$1725
Rounded DOWN to the nearest \$100, \$1725 becomes \$1700

... and subtracted \$50 for each dependent that she claimed.
Elena has 2 dependents
So, we subtract a total of \$100

\$1700 - \$100 = \$1600

Cheers,
Brent
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Re: To determine her state income tax last year, Elena computed 5 percent [#permalink]
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Bunuel wrote:
To determine her state income tax last year, Elena computed 5 percent of her gross income, rounded the resulting figure down to the nearest \$100, and subtracted \$50 for each dependent that she claimed. If Elena's gross income was \$34,500 and she claimed 2 dependents, how much did she determine her state income tax to be?

A. \$1,600
B. \$1,625
C. \$1,650
D. \$1,675
E. \$1,700

Solution:

First of all, 5% of \$34,500 is 34,500 x 0.05 = \$1,725. Rounded down to the nearest \$100 yields \$1,700. Finally, because she has 2 dependents, she can deduct 50 x 2 = \$100. Therefore, her state income tax is 1,700 - 100 = \$1,600.

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Re: To determine her state income tax last year, Elena computed 5 percent [#permalink]
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Re: To determine her state income tax last year, Elena computed 5 percent [#permalink]
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