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Your Answer
A
B
C
D
E
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In country X a returning tourist must pay 8 percent tax applied to the first $500 or less worth of imported goods. If the total value is in excess of $500 he must pay an additional 15 percent tax on the portion of the total value in excess of 500. What tax must be paid by a returning tourist who imports good with a total value of $720?
A. $33
B. $70
C. $73
D. $92.60
E. $108
The OA is C.
We can solve this PS question as follows,
(0.08)500 + 0.15(720 - 500) = tax paid
40 + 0.15(220) = tax paid
40 + 33 = tax paid
73 = tax paid
Hence, C is the correct answer.
A. $33
B. $70
C. $73
D. $92.60
E. $108
The OA is C.
We can solve this PS question as follows,
(0.08)500 + 0.15(720 - 500) = tax paid
40 + 0.15(220) = tax paid
40 + 33 = tax paid
73 = tax paid
Hence, C is the correct answer.
