A person needs to pay a tax of $5\%$ over the excess bill of $\$1000$ purchase. However, if the total bill

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VJesus12: Legendary Member; Posts: 2276; Joined: Sat Oct 14, 2017 6:10 amFollowed by: 3 members

by VJesus12 » Wed Apr 28, 2021 5:42 am

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A person needs to pay a tax of $5\%$ over the excess bill of $\$1000$ purchase. However, if the total bill (i.e. purchase bill + tax) exceeds $\$1999,$ then he needs to pay a tax of $10\%$ over the excess purchase of $\$1000.$ What can be the maximum purchase bill amount which will ensure that the person pays only $5\%$ tax?

A. $\$1001$
B. $\$1500$
C. $\$1543.24$
D. $\$1950$
E. $\$1951.43$

Answer: E

Source: e-GMAT

Source: Beat The GMAT — Problem Solving | Wed Apr 28, 2021 5:42 am

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