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

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

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New post 05 Oct 2010, 05:42
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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
[Reveal] Spoiler: OA

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Re: what was the total value of the item........ [#permalink]

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New post 05 Oct 2010, 06:09
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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 \(0.07(x-1,000)=87.5\) --> \(x-1,000=1,250\) --> \(x=2,250\).

Answer: C.
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Re: what was the total value of the item........ [#permalink]

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New post 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.

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Re: what was the total value of the item........ [#permalink]

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New post 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)
Add 1000 ----- ( B)

(A) + (B) = 2250
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Re: When Leo imported a certain item, he paid a 7 percent import [#permalink]

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New post 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

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Re: When Leo imported a certain item, he paid a 7 percent import [#permalink]

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New post 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

Answer: C
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Re: When Leo imported a certain item, he paid a 7 percent import   [#permalink] 06 Oct 2017, 10:49
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