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

Redeem

Target Test Prep · GMAT

Choose how you want to prepare

Learn live with an expert or move at your own pace. Every option includes the complete TTP study system.

★★★★★5.0559 reviews
GMATLiveTeach 7 seats left
Chris Peckover
NEXT LIVE COHORT

Oct 13 to Jan 7, 2027

with Chris Peckover

Schedule
Tue, Thu · 8:00 to 10:00 PM ET
Included
40 live hours + 6 months of GMAT OnDemand
  • Live instruction and real-time questions
  • Class recordings and assigned practice
View class & enroll
Limited cohort · enrollment openTarget Test Prep
EALiveTeach 5 seats left
Logan Thompson
EXECUTIVE ASSESSMENT

Sep 6 to Dec 6, 2026

with Logan Thompson

Schedule
Sun · 9:30 AM to 12:30 PM ET
Included
40 hours of live online classes plus six months of access to the complete TTP EA OnDemand course.
  • 165+ EA Score Guarantee
  • 4,100+ Quant, Verbal, and Integrated Reasoning practice questions
  • 400+ hours of in-depth video lessons
  • 3,000+ step-by-step video solutions
View EA class & enroll
Limited cohort · enrollment openTarget Test Prep
GMATOnDemand Start anytime
SELF-PACED MASTERCLASS

Target Test Prep GMAT OnDemand

Complete access from day one. Study on your schedule.

715+ score guarantee
$0to start then $127/mo
  • Personalized study plan and analytics
  • Thousands of lessons and practice questions
Start free 5-day trial
Read 559 reviewsTarget Test Prep

Compare the format, schedule, and included access before enrolling. Prices and seat counts shown reflect the supplied offer details.

income tax

Expert replies
Post new topic Post Reply
Previous Topic Next Topic
Master | Next Rank: 500 Posts
Posts: 265
Joined: Tue Jul 03, 2012 11:04 pmFollowed by: 6 members
by grandh01 » Fri Aug 03, 2012 3:27 pm
After paying a 10 percent tax on all
income over $3,000, a person had a net
income of $12,000. What was the income
before taxes?
(A) $13,300
(B) $13,000
(C) $12,900
(D) $10,000
(E) $9,000

Thanks in advance
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Source: — Problem Solving |
User avatar
Legendary Member
Posts: 520
Joined: Sat Apr 28, 2012 9:12 pmFollowed by: 49 members
Thanked: 339 times
GMAT Score:770

by eagleeye » Fri Aug 03, 2012 4:15 pm
grandh01 wrote:After paying a 10 percent tax on all
income over $3,000, a person had a net
income of $12,000. What was the income
before taxes?
(A) $13,300
(B) $13,000
(C) $12,900
(D) $10,000
(E) $9,000

Thanks in advance
Let income over 3000 = x. Tax = 0.1x => income in pocket = x- 0.1x = 0.9x
Then:
Net income = 3000 + 0.9x = 12000
=> x = 9000/.9 = 10000
Hence income before taxes = x+3000= 13000$
B is correct.
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Master | Next Rank: 500 Posts
Posts: 392
Joined: Thu Jan 15, 2009 12:52 pm
Location: New Jersey
Thanked: 76 times

by truplayer256 » Fri Aug 03, 2012 4:58 pm
Let the total income be x.
Net income = Income before taxes - taxed income = x - (x - 3000)(0.10) = 12000
0.90x + 300 = 12000
x = 11700 * 10/9 = 1300*10 = 13,000
Choose B
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY

GMAT/MBA Expert

User avatar
GMAT Instructor
Posts: 3835
Joined: Fri Apr 02, 2010 10:00 pmFollowed by: 523 members
Location: Milpitas, CA
Thanked: 1854 times
GMAT Score:770

by Anurag@Gurome » Fri Aug 03, 2012 7:07 pm
grandh01 wrote:After paying a 10 percent tax on all
income over $3,000, a person had a net
income of $12,000. What was the income
before taxes?
(A) $13,300
(B) $13,000
(C) $12,900
(D) $10,000
(E) $9,000

Thanks in advance
Let the income before paying taxes = $x
Then tax = 10% of (x - 3000) = 0.1x - 300
So, Net income = 12000 = x - (0.1x - 300)
Solving the above equation, we get,
0.9x = 11700
x = 13,000

The correct answer is B.
Anurag Mairal, Ph.D., MBA
GMAT Expert, Admissions and Career Guidance
Gurome, Inc.
1-800-566-4043 (USA)

Join Our Facebook Groups
GMAT with Gurome
https://www.facebook.com/groups/272466352793633/
Admissions with Gurome
https://www.facebook.com/groups/461459690536574/
Career Advising with Gurome
https://www.facebook.com/groups/360435787349781/
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
User avatar
GMAT Instructor
Posts: 1462
Joined: Thu Apr 09, 2015 9:34 amFollowed by: 22 members
Location: New York, NY
Thanked: 39 times

by Jeff@TargetTestPrep » Wed Nov 22, 2017 11:21 am
grandh01 wrote:After paying a 10 percent tax on all
income over $3,000, a person had a net
income of $12,000. What was the income
before taxes?
(A) $13,300
(B) $13,000
(C) $12,900
(D) $10,000
(E) $9,000
We can let the initial income = n and thus:

12,000 = n - 0.1(n - 3,000)

12,000 = n - 0.1n + 300

11,700 = 0.9n

117,000 = 9n

n = 117,000/9 = 13,000

Answer: B

Jeffrey Miller
Head of GMAT Instruction
[email protected]

Image

See why Target Test Prep is rated 5 out of 5 stars on BEAT the GMAT. Read our reviews
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY

GMAT/MBA Expert

User avatar
Elite Legendary Member
Posts: 10392
Joined: Sun Jun 23, 2013 6:38 pmFollowed by: 511 members
Location: Palo Alto, CA
Thanked: 2867 times
GMAT Score:800

by [email protected] » Wed Nov 22, 2017 1:06 pm
Hi All,

We're told that AFTER paying a 10% tax on all income OVER $3,000, a person had a net income of $12,000. We're asked for the income BEFORE taxes. This question can be solved by TESTing THE ANSWERS.

Since the income after taxes was $12,000, the income BEFORE taxes MUST be greater than $12,000. Among the first 3 answer choices, let's TEST Answer B first...

Answer B: $13,000

IF.... total income was $13,000
10% tax was paid on ($13,000-$3,000) = (.1)($10,000) = $1,000
Thus, income AFTER tax was $13,000 - $1,000 = $12,000
This is an exact match for what we were told, so this MUST be the answer!

Final Answer: B

GMAT assassins aren't born, they're made,
Rich
Contact Rich at [email protected]
Image
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Post new topic Post Reply
• Page 1 of 1