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

Redeem

To determine her state income tax last year, Elena computed 5 percent of her gross income, rounded the resulting figure

This topic has expert replies
Post new topic Post Reply
Previous Topic Next Topic
Moderator
Posts: 2599
Joined: Sun Oct 29, 2017 2:08 pm
Followed by:2 members

To determine her state income tax last year, Elena computed 5 percent of her gross income, rounded the resulting figure

by AAPL » Thu Jan 28, 2021 2:21 am

Timer

00:00

Your Answer

A

B

C

D

E

Global Stats

GMAT Prep

To determine her state income tax last year, Elena computed 5 percent of her gross income, rounded the resulting figure down to the nearest $100, and subtracted $50 for each dependent that she claimed. If Elena's gross income was $34,500 and she claimed 2 dependents, how much did she determine her state income tax to be?

A. $1,600
B. $1,625
C. $1,650
D. $1,675
E. $1,700

OA A
Top
Source: — Problem Solving |

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

Re: To determine her state income tax last year, Elena computed 5 percent of her gross income, rounded the resulting fig

by Brent@GMATPrepNow » Thu Jan 28, 2021 5:56 am
AAPL wrote: ↑
Thu Jan 28, 2021 2:21 am
 GMAT Prep

To determine her state income tax last year, Elena computed 5 percent of her gross income, rounded the resulting figure down to the nearest $100, and subtracted $50 for each dependent that she claimed. If Elena's gross income was $34,500 and she claimed 2 dependents, how much did she determine her state income tax to be?

A. $1,600
B. $1,625
C. $1,650
D. $1,675
E. $1,700

OA A
Elena computed 5 percent of her gross income, rounded the resulting figure down to the nearest $100....
10% of $34,500 = $3450
So, 5% of $34,500 = $1725
Rounded DOWN to the nearest $100, $1725 becomes $1700

... and subtracted $50 for each dependent that she claimed.
Elena has 2 dependents
So, we subtract a total of $100

$1700 - $100 = $1600

Answer: A

Cheers,
Brent
Brent Hanneson - Creator of GMATPrepNow.com
Image
Top

GMAT/MBA Expert

User avatar
GMAT Instructor
Posts: 8086
Joined: Sat Apr 25, 2015 10:56 am
Location: Los Angeles, CA
Thanked: 43 times
Followed by:29 members

Re: To determine her state income tax last year, Elena computed 5 percent of her gross income, rounded the resulting fig

by Scott@TargetTestPrep » Wed Feb 03, 2021 9:15 am
AAPL wrote: ↑
Thu Jan 28, 2021 2:21 am
 GMAT Prep

To determine her state income tax last year, Elena computed 5 percent of her gross income, rounded the resulting figure down to the nearest $100, and subtracted $50 for each dependent that she claimed. If Elena's gross income was $34,500 and she claimed 2 dependents, how much did she determine her state income tax to be?

A. $1,600
B. $1,625
C. $1,650
D. $1,675
E. $1,700

OA A
Solution:

First of all, 5% of $34,500 is 34,500 x 0.05 = $1,725. Rounded down to the nearest $100 yields $1,700. Finally, because she has 2 dependents, she can deduct 50 x 2 = $100. Therefore, her state income tax is 1,700 - 100 = $1,600.

Answer: A

Scott Woodbury-Stewart
Founder and CEO
[email protected]

Image

See why Target Test Prep is rated 5 out of 5 stars on BEAT the GMAT. Read our reviews

ImageImage
Top
Post new topic Post Reply
• Page 1 of 1