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first degree equations

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first degree equations

by bizwiz » Wed Feb 02, 2011 4:41 am
Can anyone help me to better understand the explanation to this first degree eqn question? iMy main problem with this is
do the word in excess of generally mean subtraction is required?

Q:Leo imported a certain item, he paid 7% import tax on profit of the total value of the in excess of $1,000. If the amount of the import tax that Leo paid was $87.50, what was the total value of the item?

Soln: 7 % of value in excess of $1000 = 87.5
0.07 (x- 1000) = 87.5
x = 2,250
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by Night reader » Wed Feb 02, 2011 5:12 am
bizwiz wrote:Can anyone help me to better understand the explanation to this first degree eqn question? iMy main problem with this is
do the word in excess of generally mean subtraction is required?

Q:Leo imported a certain item, he paid 7% import tax on profit of the total value of the in excess of $1,000. If the amount of the import tax that Leo paid was $87.50, what was the total value of the item?

Soln: 7 % of value in excess of $1000 = 87.5
0.07 (x- 1000) = 87.5
x = 2,250
subtraction
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by Geva@EconomistGMAT » Wed Feb 02, 2011 5:14 am
bizwiz wrote:Can anyone help me to better understand the explanation to this first degree eqn question? iMy main problem with this is
do the word in excess of generally mean subtraction is required?

Q:Leo imported a certain item, he paid 7% import tax on profit of the total value of the in excess of $1,000. If the amount of the import tax that Leo paid was $87.50, what was the total value of the item?

Soln: 7 % of value in excess of $1000 = 87.5
0.07 (x- 1000) = 87.5
x = 2,250
sounds about right. What the question is trying to say is that the first $1000 are exempt from tax - the 7% tax is only taken on the value over $1000. For example, if the item's value is $1100, Leo will only pay 7% on the $100 in excess of $1,000 - or only $7 tax.

In your example above, if x=2250, then Leo should pay the 7% only on the 1250 above the first $1000. 7%*1250 = 7/100*1250 = 7*12.5 = 87.5
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