GMAT Question of the Day - Daily to your Mailbox; hard ones only

 It is currently 18 Sep 2018, 10:49

### 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

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# When Leo imported a certain item, he paid a 7 percent import

Author Message
TAGS:

### Hide Tags

Manager
Joined: 22 Sep 2010
Posts: 84
When Leo imported a certain item, he paid a 7 percent import  [#permalink]

### Show Tags

05 Oct 2010, 05:42
1
00:00

Difficulty:

5% (low)

Question Stats:

90% (01:00) correct 10% (01:22) wrong based on 71 sessions

### HideShow timer Statistics

When Leo imported a certain item, he paid a 7 percent import tax on the portion of the total value of the item in excess of $1,000. If the amount of the import tax that Leo paid was$87.50, what was the total value of the item ?

A. $1,600 B.$1,850
C. $2,250 D.$2,400
E. $2,750 Math Expert Joined: 02 Sep 2009 Posts: 49206 Re: what was the total value of the item........ [#permalink] ### Show Tags 05 Oct 2010, 06:09 pzazz12 wrote: When Leo imported a certain item, he paid a 7 percent import tax on the portion of the total value of the item in excess of$1,000. If the amount of the import tax that Leo paid was $87.50, what was the total value of the item ? A.$ 1,600
B.$1,850 C.$ 2,250
D.$2,400 E.$ 2,750

Let the cost of the item be $$x$$, then $$0.07(x-1,000)=87.5$$ --> $$x-1,000=1,250$$ --> $$x=2,250$$.

_________________
Intern
Joined: 29 Sep 2010
Posts: 13
Schools: IMD '16 (A)
GMAT 1: 730 Q47 V44
Re: what was the total value of the item........  [#permalink]

### Show Tags

05 Oct 2010, 07:38
This is another one that you can backcalculate using the answers.

First, try the second highest (1,850). You only pay tax on anything over 1,000, so you are paying 7% of 850. You know 10% of 850 is 85 which is already lower than the amount paid so you know B is wrong (and therefore so is A)

Try the fourth highest now (2,400). The tax would be 7% of 1,400. My way of calculating this is: (10% of 1,400) - (3 * 1% of 1400) = 140 - 3*14 = 140 - 42 = 98. Too high. This also eliminates E) so you know the answer is C.
Retired Moderator
Joined: 03 Aug 2010
Posts: 214
Re: what was the total value of the item........  [#permalink]

### Show Tags

05 Oct 2010, 08:13
put an equation 7% of an amount is 87.5 so what should be 100%...which comes to 1250 (A)

(A) + (B) = 2250
_________________

http://www.gmatpill.com/gmat-practice-test/

Amazing Platform

Intern
Joined: 31 Oct 2016
Posts: 3
Re: When Leo imported a certain item, he paid a 7 percent import  [#permalink]

### Show Tags

04 Oct 2017, 06:35
87.50=7% of X.
this equals to 1250
1,000 + 1,250 = 2250.

Please let me know if this is correct
Target Test Prep Representative
Status: Founder & CEO
Affiliations: Target Test Prep
Joined: 14 Oct 2015
Posts: 3484
Location: United States (CA)
Re: When Leo imported a certain item, he paid a 7 percent import  [#permalink]

### Show Tags

06 Oct 2017, 10:49
pzazz12 wrote:
When Leo imported a certain item, he paid a 7 percent import tax on the portion of the total value of the item in excess of $1,000. If the amount of the import tax that Leo paid was$87.50, what was the total value of the item ?

A. $1,600 B.$1,850
C. $2,250 D.$2,400
E. $2,750 We know that when Leo imports a certain item, he pays a 7% import tax on the portion of the total value in excess of$1,000. “In excess of” is the key phrase here, and it means that Leo does not pay any tax on his items until he hits \$1,000. The best way to complete this problem is to set up an equation.

First, let’s say that T = total value of the item; therefore, (T – 1000) is the portion that is taxable.

Next, we can create an equation to determine T:

87.5 = 0.07(T – 1,000)

87.5 = 0.07T – 70

157.5 = 0.07T

157.5/0.07 = T

15,750/7 = T

T = 2,250

_________________

Scott Woodbury-Stewart
Founder and CEO

GMAT Quant Self-Study Course
500+ lessons 3000+ practice problems 800+ HD solutions

Re: When Leo imported a certain item, he paid a 7 percent import &nbs [#permalink] 06 Oct 2017, 10:49
Display posts from previous: Sort by

# Events & Promotions

 Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.