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When Leo imported a certain item, he paid a 7 percent import [#permalink]
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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 Practice Questions Question: 11 Page: 153 Difficulty: 600
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Re: When Leo imported a certain item, he paid a 7 percent import [#permalink]
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SOLUTIONWhen 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 value of the item be \($x\), then \(0.07(x1,000)=87.5\) > \(x1,000=1,250\) > \(x=2,250\). Answer: C. Else, you could backsolve: If the value of the item is $2,000 the tax is \((2,0001,000)*0.07=70\), so the value must be more than $2,000. Eliminate A and B. If the value of the item is $2,400 the tax is \((2,4001,000)*0.07=98\), so the value must be less than $2,400. Eliminate D and E. Only answer choice C is left.
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Re: When Leo imported a certain item, he paid a 7 percent import [#permalink]
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06 Aug 2012, 10:43
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Used back substitution.
using A we get $42 of interest. So we want something close to double the price to get the right answer. C was the next candidate.



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Re: When Leo imported a certain item, he paid a 7 percent import [#permalink]
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10 Aug 2012, 02:27
SOLUTIONWhen 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 value of the item be \($x\), then \(0.07(x1,000)=87.5\) > \(x1,000=1,250\) > \(x=2,250\). Answer: C. Else, you could backsolve: If the value of the item is $2,000 the tax is \((2,0001,000)*0.07=70\), so the value must be more than $2,000. Eliminate A and B. If the value of the item is $2,400 the tax is \((2,4001,000)*0.07=98\), so the value must be less than $2,400. Eliminate D and E. Only answer choice C is left.
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Re: When Leo imported a certain item, he paid a 7 percent import [#permalink]
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18 Dec 2013, 09:21
Bunuel wrote: SOLUTION
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 value of the item be \($x\), then \(0.07(x1,000)=87.5\) > \(x1,000=1,250\) > \(x=2,250\).
Answer: C.
Else, you could backsolve: If the value of the item is $2,000 the tax is \((2,0001,000)*0.07=70\), so the value must be more than $2,000. Eliminate A and B. If the value of the item is $2,400 the tax is \((2,4001,000)*0.07=98\), so the value must be less than $2,400. Eliminate D and E.
Only answer choice C is left. Do you have tips or a guide on how to most efficiently divide with nonintegers in the denominator? I have seen two PS questions where they want us to divide some integer value with a noninteger (0.8 and now 0.07), and I do not really know how to properly approach the division.



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Re: When Leo imported a certain item, he paid a 7 percent import [#permalink]
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19 Dec 2013, 00:01
aeglorre wrote: Bunuel wrote: SOLUTION
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 value of the item be \($x\), then \(0.07(x1,000)=87.5\) > \(x1,000=1,250\) > \(x=2,250\).
Answer: C.
Else, you could backsolve: If the value of the item is $2,000 the tax is \((2,0001,000)*0.07=70\), so the value must be more than $2,000. Eliminate A and B. If the value of the item is $2,400 the tax is \((2,4001,000)*0.07=98\), so the value must be less than $2,400. Eliminate D and E.
Only answer choice C is left. Do you have tips or a guide on how to most efficiently divide with nonintegers in the denominator? I have seen two PS questions where they want us to divide some integer value with a noninteger (0.8 and now 0.07), and I do not really know how to properly approach the division. Work with integers: \(0.07(x1,000)=87.5\); \(7(x1,000)=8750\); \(x1,000=\frac{8750}{7}\).
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Re: When Leo imported a certain item, he paid a 7 percent import [#permalink]
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Since we know Leo pays 7% of the amount that is in excess of $1000 We can assume 'x' to be the excess amount. Then 7 percent of x = 87.50 => x = 1250. Hence total value = 1000 + 1250 = 2250. Hence (C)



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Re: When Leo imported a certain item, he paid a 7 percent import [#permalink]
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09 Sep 2014, 21:38
Bunuel 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 Practice Questions Question: 11 Page: 153 Difficulty: 600 Hi bunuel, please let me know whether my reasoning is correct.. 7 percent import tax on the portion of the total value of the item. Tax paid=$87.50 7/100 = 87.50/X ==> 1250.. 1250+1000 = 2250. though i got an answer correct . how we could consider 87.50 for only 1250 rather than 2250? .. I got tried on blind guess but i got the answer..



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Re: When Leo imported a certain item, he paid a 7 percent import [#permalink]
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luckyme17187 wrote: Bunuel 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 Practice Questions Question: 11 Page: 153 Difficulty: 600 Hi bunuel, please let me know whether my reasoning is correct.. 7 percent import tax on the portion of the total value of the item. Tax paid=$87.50 7/100 = 87.50/X ==> 1250.. 1250+1000 = 2250. though i got an answer correct . how we could consider 87.50 for only 1250 rather than 2250? .. I got tried on blind guess but i got the answer.. Consider it like this: 7% of x = 87.50 (7/100) X = 87.50 7X = 8750 X= 1250 $ Now tax is payed on an amount in excess of 1000$. So the total value of the item = 1250 + 1000 = 2250 Ans (B)



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Re: When Leo imported a certain item, he paid a 7 percent import [#permalink]
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14 Nov 2014, 08:02
Ballparking, instead of $87,5, $84 is easily divisible by 7. If 7% of the sum is=$84 > That means 1% is=$84/7 > $12, which means 100% is $1200
$1200+$1000= $2200 > little more than that so best choice $2250, other ones are way to far apart.



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Re: When Leo imported a certain item, he paid a 7 percent import [#permalink]
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20 Nov 2014, 02:18
87.5 is the tax paid @ 7% So the excess amount \(= 87.5 * \frac{7}{100} = 1250\) Amount = 1000+1250 = 2250 Answer = C
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When Leo imported a certain item, he paid a 7 percent import [#permalink]
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21 Sep 2015, 03:02
pacifist85 wrote: I really liked the solution by zerosleep. Really easy. Nice and simple! Well done! Yeah even i liked that approach too.. initially i did this question incorrectly But what i figured out is this: 1000 + x = the entire sum that we need get. 1000= tax free x= taxable amount x*0.07 = 87.50 x= 87.25/0.07  8750/71250 so the original price including excess is = 1000 + 1250 = 2250 ( Answer Choice C)



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When Leo imported a certain item, he paid a 7 percent import [#permalink]
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11 May 2016, 06:18
Usually I do it the following way. If we are told that 7% of the excess amount is 87.5 then we can find the value of one 1%, i.e. 87.5/7=12.5. From this we can derive the full value of the excess amount: 12.5*100=1250=excess amount. 1000+1250
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Re: When Leo imported a certain item, he paid a 7 percent import [#permalink]
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11 May 2016, 06:27
Bunuel 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
Although this problem seems challenging it is actually a simple word translation. 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, and, 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]
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05 Jul 2016, 00:45
Bunuel 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) $2,750 Practice Questions Question: 11 Page: 153 Difficulty: 600 87.5$ was 7% of total money after exceeds 1000$, so 100% of this money will be 1250$ so 1250$ +1000$=2250$



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When Leo imported a certain item, he paid a 7 percent import [#permalink]
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05 Jul 2016, 01:36
87.5=0.07amount excess than 1000 amount excess = 1250 therefore total amt = 2250 C is correct Total value=2250 Sent from my iPhone using GMAT Club Forum mobile app



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Re: When Leo imported a certain item, he paid a 7 percent import [#permalink]
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Leo paid 7% for amt that is in excess of $1000 Let 'x' = excess amount. Then 7% of x = 87.50 => x = 1250. So, Total value = 1000 + 1250 = 2250. Hence (C) Do not forget to add 1000, as that is the trap in such questions usually.



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Re: When Leo imported a certain item, he paid a 7 percent import [#permalink]
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30 Jan 2018, 19:38
Bunuel niks18 amanvermagmat chetan2uQuote: 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 Can I approximate values in below manner? I know 12 * 7 = 84 Given: Whatever is access of $1000 will be charged 7%, lets assume access of $1200 over $1000 so approx $84 will be charged. ($84 is closest to $87.50) Only value that is closest to total of $2200 is (C)
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Re: When Leo imported a certain item, he paid a 7 percent import [#permalink]
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30 Jan 2018, 19:58
adkikani wrote: Bunuel niks18 amanvermagmat chetan2uQuote: 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 Can I approximate values in below manner? I know 12 * 7 = 84 Given: Whatever is access of $1000 will be charged 7%, lets assume access of $1200 over $1000 so approx $84 will be charged. ($84 is closest to $87.50) Only value that is closest to total of $2200 is (C) Yes, you could do this way.
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