BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem

Percent

This topic has expert replies
Post new topic Post Reply
Previous Topic Next Topic
Master | Next Rank: 500 Posts
Posts: 116
Joined: Wed Oct 03, 2012 10:44 pm
Thanked: 5 times
Followed by:1 members

Percent

by theachiever » Tue Dec 11, 2012 11:11 pm
In Country X a returning tourist may import goods with a total value of 500$ or less tax free,but must pay an 8 percent tax on the portion of the total value in excess of 500$. What tax must be paid by a returning tourist who imports goods with a total value of 730$?

  • A.58.40
    B.40
    C.24.60
    D.18.40
    E.16.00
Resilience is a trait that manifests in an individual when he/she faces consistent failures motivating them to succeed in the end.
Top
Source: — Problem Solving |
Master | Next Rank: 500 Posts
Posts: 131
Joined: Wed Nov 14, 2012 2:01 pm
Thanked: 39 times
Followed by:2 members

by puneetkhurana2000 » Wed Dec 12, 2012 12:12 am
Taxation should be charged on $730 - $500 = $230

Total sales tax = 8% of $230 = $18.40

Answer D
Top

GMAT/MBA Expert

User avatar
GMAT Instructor
Posts: 16207
Joined: Mon Dec 08, 2008 6:26 pm
Location: Vancouver, BC
Thanked: 5254 times
Followed by:1268 members
GMAT Score:770

by Brent@GMATPrepNow » Wed Dec 12, 2012 8:42 am
theachiever wrote:In Country X a returning tourist may import goods with a total value of 500$ or less tax free,but must pay an 8 percent tax on the portion of the total value in excess of 500$. What tax must be paid by a returning tourist who imports goods with a total value of 730$?


A.58.40
B.40
C.24.60
D.18.40
E.16.00
puneetkhurana2000's solution is great.
I'd just like to point out that the answer choices allow us to forego actually calculating 8% of $230.

We know that 8% of $200 is $16, so 8% of $230 is greater than $16. Eliminate E
We also know that 8% of $300 is $24, so 8% of $230 is less than $24. Eliminate A, B, C

By the process of elimination, the correct answer is D

Takeaway: Yes, I know that calculating 8% of $230 is not a huge task. However, checking the answer choices before performing any calculations can sometimes save you a lot of work.

Cheers,
Brent
Brent Hanneson - Creator of GMATPrepNow.com
Image
Top
Post new topic Post Reply
• Page 1 of 1