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C
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
45%
(medium)
Question Stats:
66% (01:32) correct
34%
(01:23)
wrong
based on 115
sessions
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In 2001, Joe paid 5.1 percent of his income in taxes. In 2002, did Joe pay less than 5.1 percent of his income in taxes?
(1) From 2001 to 2002, Joe’s income increased by 10 percent.
(2) Taxes paid in 2002 are 3.4 percent of Joe’s income in 2001.
(1) From 2001 to 2002, Joe’s income increased by 10 percent.
(2) Taxes paid in 2002 are 3.4 percent of Joe’s income in 2001.
15 Mar 2026, 02:14
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In 2001, Joe paid 5.1 percent of his income in taxes. In 2002, did Joe pay less than 5.1 percent of his income in taxes?
(1) From 2001 to 2002, Joe’s income increased by 10 percent.
(2) Taxes paid in 2002 are 3.4 percent of Joe’s income in 2001.
Let Joe's income in the year 2001 be I1, and that in 2002 be I2.
In 2001, amount paid in taxes = 0.051*Income (5.1% of income)
We need to determine if Joey paid less than 5.1% of his income in taxes in 2002.
Now, let's look at each statement individually and then at both of them together (if required):
Statement 1: From 2001 to 2002, Joe’s income increased by 10 percent.
Given: I2 = 1.1*I1
However, we do not have any information about the amount of taxes paid by Joe in 2002. Hence, Statement 1 is clearly insufficent alone.
Now, let's take a look at Statement 2 closely:
Statement 2: Taxes paid in 2002 are 3.4 percent of Joe’s income in 2001.
Given: Tax paid in 2002 = 3.4% * I1 = 0.034* I1
However, as we do not have any information about Joe's income in 2001, we cannot determine the answer uniquely. Hence, Statement 2 is insufficient alone as well.
Now, let's look at the combination of both the statements:
I2 = 1.1*I1
Tax paid in 2002 = 0.034* I1
Thus, the percentage of income paid in taxes in the year 2002 = (0.034*I1) / (1.1*I1) * 100 = 3.09%
Hence, the correct answer is Option C - BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.
Hope this helps!
(1) From 2001 to 2002, Joe’s income increased by 10 percent.
(2) Taxes paid in 2002 are 3.4 percent of Joe’s income in 2001.
Let Joe's income in the year 2001 be I1, and that in 2002 be I2.
In 2001, amount paid in taxes = 0.051*Income (5.1% of income)
We need to determine if Joey paid less than 5.1% of his income in taxes in 2002.
Now, let's look at each statement individually and then at both of them together (if required):
Statement 1: From 2001 to 2002, Joe’s income increased by 10 percent.
Given: I2 = 1.1*I1
However, we do not have any information about the amount of taxes paid by Joe in 2002. Hence, Statement 1 is clearly insufficent alone.
Now, let's take a look at Statement 2 closely:
Statement 2: Taxes paid in 2002 are 3.4 percent of Joe’s income in 2001.
Given: Tax paid in 2002 = 3.4% * I1 = 0.034* I1
However, as we do not have any information about Joe's income in 2001, we cannot determine the answer uniquely. Hence, Statement 2 is insufficient alone as well.
Now, let's look at the combination of both the statements:
I2 = 1.1*I1
Tax paid in 2002 = 0.034* I1
Thus, the percentage of income paid in taxes in the year 2002 = (0.034*I1) / (1.1*I1) * 100 = 3.09%
Hence, the correct answer is Option C - BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.
Hope this helps!
15 Mar 2026, 11:07
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Let me think about what we're really asking. We need to know if 2002 tax rate < 5.1%. We know 2001 rate was 5.1%, but statement (1) alone just tells us income went up. That doesn't tell us anything about taxes.
If income increased but we don't know how much his tax bill changed, statement (1) is insufficient.
Statement (2) tells us his 2002 taxes = 3.4% of his 2001 income. So let's call 2001 income = I.
Then 2001 taxes = 0.051I
And 2002 taxes = 0.034I
Now here's the key: what's his 2002 income? We need that to find the 2002 tax rate. Statement (2) by itself doesn't tell us his 2002 income, so alone it's insufficient.
Combined: From (1), his 2002 income = 1.1I
From (2), his 2002 taxes = 0.034I
So 2002 tax rate = 0.034I / 1.1I = 0.034/1.1 = 3.09%
Since 3.09% < 5.1%, we can answer the question with certainty.
Answer: C. Both statements together are sufficient.
The trick here is recognizing that (2) gives you the absolute tax amount in terms of 2001 income, but you still need (1) to get his 2002 income so you can calculate the rate.
If income increased but we don't know how much his tax bill changed, statement (1) is insufficient.
Statement (2) tells us his 2002 taxes = 3.4% of his 2001 income. So let's call 2001 income = I.
Then 2001 taxes = 0.051I
And 2002 taxes = 0.034I
Now here's the key: what's his 2002 income? We need that to find the 2002 tax rate. Statement (2) by itself doesn't tell us his 2002 income, so alone it's insufficient.
Combined: From (1), his 2002 income = 1.1I
From (2), his 2002 taxes = 0.034I
So 2002 tax rate = 0.034I / 1.1I = 0.034/1.1 = 3.09%
Since 3.09% < 5.1%, we can answer the question with certainty.
Answer: C. Both statements together are sufficient.
The trick here is recognizing that (2) gives you the absolute tax amount in terms of 2001 income, but you still need (1) to get his 2002 income so you can calculate the rate.
