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Interest PSAfter paying a 10 percent tax on all income over

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by karthikpandian19 » Mon Dec 19, 2011 1:12 am
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
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by Anurag@Gurome » Mon Dec 19, 2011 1:24 am
karthikpandian19 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
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 = 13000

The correct answer is B.
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by karthikpandian19 » Tue Dec 27, 2011 9:59 pm
OA is B
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