1000CR- GMAT - Test A - Ques 17

I think the stem mean that

With Proposition 13, after 11 years, the home value 75000 will be taxed 914 usd ( 1% + 22* 2%* 1% of 75000)

Without proposition 13, the home value 75000 usd will be taxed 6000 usd for the year 11, equal to 1 % of 200000 USD home for the first year,

I will go with E,
The OA : Pls

All right guys I am back.

Since it's my first day as Managing Director of the Beat the GMAT I think nothing could be the better post & thread than this one, trying to help once again to members.
Let me tell you guys this thread is more than two years old & I have completely lost the touch of studying GMAT topics. My CR skills are not as sharp as it used to be, earlier .

Still let me try to explain this problem once again: ( there are chances of me being wrong so I would suggest someone to get some expert's attention here.)
This problem is surely a tough one, difficult to comprehend & still difficult to explain

Gimme some time to read it again.. will reply in an hour or so.
Thanks for the patience.

Oh by the way OA is B

WOW!
I read my two year old post & I think i'd had explained quite well.
I would suggest to re-read my posts there, if you didnt get it here's my one more attempt. But guess after this I wont be explain this. I probably wont become a good tutor


Fact & inference:
You & Your neighbour owns identical property.

Data given:
1. at 1st year you pay @ 1% of 75,000 ======== 750
2. at 2nd year you add 2% to paid amount
to get the new figure ie: 750 X (1+2)% ==== 772
3. similary for next years 772 X 1.05 ====== 811
4.th year you pay: 867
946
similarly 1050
1186

& hence forth
for coming years the taxed amount goes on increase.
Note that you donot pay less tax for the identical property worth the same, today.

This conclusion eliminates point: A D & E. as you are not paying less than your neighbour. You dont have idea about it.(whether it's less more or the same) There is no question of comparision. you must have seen by the calculations I just provided it looks scary isn't it. Let me re-iterate this is not a PS problem.

Yes, you paid 750$ which is less than $2000 but that was 11 years earlier.


In case if proposition13 is removed both of you would have to 6000 as tax which is IN ANYWAYS more than what you are paying right now.
The statement gives information about what if proposition 13 is removed & nothing other stuff.
Which is what exactly Option B talks about.....

A very tricky & confusing (or hazzy??) question indeed. worth LSAT.

aim-wsc wrote:WOW!
I read my two year old post & I think i'd had explained quite well.
I would suggest to re-read my posts there, if you didnt get it here's my one more attempt. But guess after this I wont be explain this. I probably wont become a good tutor


Fact & inference:
You & Your neighbour owns identical property.

Data given:
1. at 1st year you pay @ 1% of 75,000 ======== 750
2. at 2nd year you add 2% to paid amount
to get the new figure ie: 750 X (1+2)% ==== 772
3. similary for next years 772 X 1.05 ====== 811
4.th year you pay: 867
946
similarly 1050
1186

& hence forth
for coming years the taxed amount goes on increase.
Note that you donot pay less tax for the identical property worth the same, today.

This conclusion eliminates point: A D & E. as you are not paying less than your neighbour. You dont have idea about it.(whether it's less more or the same) There is no question of comparision. you must have seen by the calculations I just provided it looks scary isn't it. Let me re-iterate this is not a PS problem.

Yes, you paid 750$ which is less than $2000 but that was 11 years earlier.


In case if proposition13 is removed both of you would have to 6000 as tax which is IN ANYWAYS more than what you are paying right now.
The statement gives information about what if proposition 13 is removed & nothing other stuff.
Which is what exactly Option B talks about.....

A very tricky & confusing (or hazzy??) question indeed. worth LSAT.

Not convinced.





I still feel its,
750 for the first year,
750 * (1.02) for the second year
750 * (1.02) * (1.02) for the third year
750 * (1.02) * (1.02) * (1.02) for the fourth year
and similarly
for the 11th year

750 * (1.02)^10 == $ 914.24 (Not approx. but precisely)

OK. agreed. You may be correct in comprehending it.
so lets take your calculations.

My intuition whispers that it is A