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For each home sold in County X, the buyer and the seller each must pay to County X a tax of 0.5 percent of the sale

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For each home sold in County X, the buyer and the seller each must pay to County X a tax of 0.5 percent of the sale

by BTGmoderatorDC » Thu Feb 27, 2020 6:14 pm

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For each home sold in County X, the buyer and the seller each must pay to County X a tax of 0.5 percent of the sale price of the home. Colleen recently sold her old home and bought a new home, both in County X. What was the total tax that Colleen paid to County X on these home sales?


(1) Colleen's old home had a sale price of $169,500.

(2) Colleen's new home had a sale price 20% greater than that of her old home.



OA C

Source: GMAT Prep
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Source: — Data Sufficiency |

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Re: For each home sold in County X, the buyer and the seller each must pay to County X a tax of 0.5 percent of the sale

by Jay@ManhattanReview » Thu Feb 27, 2020 9:21 pm

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BTGmoderatorDC wrote: ↑
Thu Feb 27, 2020 6:14 pm
 For each home sold in County X, the buyer and the seller each must pay to County X a tax of 0.5 percent of the sale price of the home. Colleen recently sold her old home and bought a new home, both in County X. What was the total tax that Colleen paid to County X on these home sales?

(1) Colleen's old home had a sale price of $169,500.

(2) Colleen's new home had a sale price 20% greater than that of her old home.

OA C

Source: GMAT Prep
Certainly, each statement alone is insufficient.

(1) and (2) together

Price of old home = 169,500;
Price of new home = 120% of 169,500 = 1.2*169,500;

Amount of transaction = 169,500 + 1.2*169,500 = $(2.2*169,500)

Tax to be paid = 0.5% of $(2.2*169,500) = a unique value.

Sufficient.

The correct answer: C

Hope this helps!

-Jay
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