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income tax

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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
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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.
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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
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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.
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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]

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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]
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