In 2006 Mr. Jacobs paid 4.8 percent of his taxable income in state taxes. In 2007 what percent of Jacob's taxable income did he pay in state taxes?
1) In 2006 Mr. Jacobs taxable income was 42,500
2) In 2007 Mr. Jacobs paid $ 232 more in state taxes than he did in 2006
org ans E
Think the answer shud be c, am i missing something in the terminology?
yr responses are appreciated
Thanks
Delta
Gmatfocus
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You can find the total taxes Mr. Jacob paid in 2007, but you cannot find what is the percentage of taxes that he paid out of his total income, because you don't know the total taxable income for 2007.
taxes paid in 2006 = 4.8% of 42500 = 2040
taxes paid in 2007 = 2040 + 232 = 2272
percent of Jacob's taxable income did he pay in state taxes =
[2272 / (total taxable income of 2007)] * 100
Since we don't know the total taxable income of 2007, both statements together are insufficient.
Hence E.
taxes paid in 2006 = 4.8% of 42500 = 2040
taxes paid in 2007 = 2040 + 232 = 2272
percent of Jacob's taxable income did he pay in state taxes =
[2272 / (total taxable income of 2007)] * 100
Since we don't know the total taxable income of 2007, both statements together are insufficient.
Hence E.
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