Events & Promotions
|
|
GMAT Club Daily Prep
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
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Apr 2601:30 AM EDT
-02:30 AM EDT
Learn how Keshav, a Chartered Accountant, scored an impressive 705 on GMAT in just 30 days with GMATWhiz's expert guidance. In this video, he shares preparation tips and strategies that worked for him, including the mock, time management, and more.
Apr 2512:30 AM EDT
-01:30 AM EDT
At one point, she believed GMAT wasn’t for her. After scoring 595, self-doubt crept in and she questioned her potential. But instead of quitting, she made the right strategic changes. The result? A remarkable comeback to 695. Check out how Saakshi did it.
Apr 2610:00 AM EDT
-11:00 AM EDT
The Target Test Prep course represents a quantum leap forward in GMAT preparation, a radical reinterpretation of the way that students should study. Try before you buy with a 5-day, full-access trial of the course for FREE!
Apr 2711:00 AM EDT
-12:00 PM EDT
Prefer video-based learning? The Target Test Prep OnDemand course is a one-of-a-kind video masterclass featuring 400 hours of lecture-style teaching by Scott Woodbury-Stewart, founder of Target Test Prep and one of the most accomplished GMAT instructors
Apr 2808:00 AM PDT
-11:00 AM PDT
Whether you are just beginning your MBA journey or fine-tuning your path to a 700+ score, GMAT Day is designed to give you a competitive edge.
May 0111:00 AM PDT
-12:00 PM PDT
Free- full-length test + 15 concept videos + 150+ short videos + study plan!
15 Oct 2025, 00:33
Kudos
Bookmarks
D
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
55%
(hard)
Question Stats:
57% (01:28) correct
43%
(01:41)
wrong
based on 162
sessions
History
Date
Time
Result
Not Attempted Yet
If the value of a piece of property decreases by 10 percent while the new tax rate on the property represents 110% of the original tax rate, 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.
(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.
15 Oct 2025, 02:53
Kudos
Bookmarks
Bunuel
Let the value of the product = 100
We are given that the value decreases by 10% = NEW value = 90
More over, it’s given that the Old tax rate x = 110% of New tax rate y
y = 110% x
y : x = 11:10
Lets look into the taxes,
Old value = 100, tax rate x = 10% , then the old tax collected = 10
New value = 90, tax rate = 11%, then the new tax collected = 9.9
Percent change = (10-9.9)/10
= (0.1/10)*100
= 1%
Decrease by 1% from the original tax amount.
Option D
16 Oct 2025, 00:16
Kudos
Bookmarks
Step 1: Pick Some Easy Numbers
Let's just invent some simple values for the property and the tax rate
* Let's say the property is worth $1,000.
* And let's pretend the original tax rate is 10%.
Based on these numbers, the original tax bill would be 10% of $1,000, which is $100.
Step 2: Apply the Changes
Now, let's adjust those numbers based on what the question says.
* New Property Value: The value decreases by 10%. A 10% drop from $1,000 is $100. So, the new value is $900.
* New Tax Rate: The rate represents 110% of the original. This means it increases by 10%. So, the new rate is 110% of our original 10%, which is 11%.
Step 3: Calculate the New Tax Bill
Now we just calculate the tax using our new numbers:
New Tax = 11% of $900
New Tax = 0.11 × 900 = $99
Step 4: Compare the Old and New
So, what's the final effect?
* The original tax was $100.
* The new tax is $99.
The tax bill went down by $1. Since our original tax was a convenient $100, a $1 drop is exactly a 1 percent decrease.
This shows the correct answer is (D) Taxes decrease by 1 percent.
Let's just invent some simple values for the property and the tax rate
* Let's say the property is worth $1,000.
* And let's pretend the original tax rate is 10%.
Based on these numbers, the original tax bill would be 10% of $1,000, which is $100.
Step 2: Apply the Changes
Now, let's adjust those numbers based on what the question says.
* New Property Value: The value decreases by 10%. A 10% drop from $1,000 is $100. So, the new value is $900.
* New Tax Rate: The rate represents 110% of the original. This means it increases by 10%. So, the new rate is 110% of our original 10%, which is 11%.
Step 3: Calculate the New Tax Bill
Now we just calculate the tax using our new numbers:
New Tax = 11% of $900
New Tax = 0.11 × 900 = $99
Step 4: Compare the Old and New
So, what's the final effect?
* The original tax was $100.
* The new tax is $99.
The tax bill went down by $1. Since our original tax was a convenient $100, a $1 drop is exactly a 1 percent decrease.
This shows the correct answer is (D) Taxes decrease by 1 percent.
Bunuel
