To determine her state income tax last year, Elena computed 5 percent of her gross income, rounded the resulting figure

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by BTGmoderatorDC » Sun Sep 11, 2022 5:56 am

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To determine her state income tax last year, Elena computed 5 percent of her gross income, rounded the resulting figure down to the nearest $100, and subtracted $50 for each dependent that she claimed. If Elena's gross income was $34,500 and she claimed 2 dependents, how much did she determine her state income tax to be?

A. $1,600
B. $1,625
C. $1,650
D. $1,675
E. $1,700

OA A

Source: GMAT Prep

Source: Beat The GMAT — Problem Solving | Sun Sep 11, 2022 5:56 am

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Re: To determine her state income tax last year, Elena computed 5 percent of her gross income, rounded the resulting fig

by Brent@GMATPrepNow » Sun Sep 11, 2022 6:27 am

BTGmoderatorDC wrote: ↑
Sun Sep 11, 2022 5:56 am
To determine her state income tax last year, Elena computed 5 percent of her gross income, rounded the resulting figure down to the nearest $100, and subtracted $50 for each dependent that she claimed. If Elena's gross income was $34,500 and she claimed 2 dependents, how much did she determine her state income tax to be?

A. $1,600
B. $1,625
C. $1,650
D. $1,675
E. $1,700

OA A

Source: GMAT Prep

Elena computed 5 percent of her gross income, rounded the resulting figure down to the nearest $100....
10% of $34,500 = $3450
So, 5% of $34,500 = $1725
Rounded DOWN to the nearest $100, $1725 becomes $1700

... and subtracted $50 for each dependent that she claimed.
Elena has 2 dependents
So, we subtract a total of $100

$1700 - $100 = $1600

Answer: A

Cheers,
Brent

Brent Hanneson - Creator of GMATPrepNow.com

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Re: To determine her state income tax last year, Elena computed 5 percent of her gross income, rounded the resulting fig

by Scott@TargetTestPrep » Fri Mar 17, 2023 11:01 am

BTGmoderatorDC wrote: ↑
Sun Sep 11, 2022 5:56 am
To determine her state income tax last year, Elena computed 5 percent of her gross income, rounded the resulting figure down to the nearest $100, and subtracted $50 for each dependent that she claimed. If Elena's gross income was $34,500 and she claimed 2 dependents, how much did she determine her state income tax to be?

A. $1,600
B. $1,625
C. $1,650
D. $1,675
E. $1,700

OA A

Source: GMAT Prep

Solution:

First of all, 5% of $34,500 is 34,500 x 0.05 = $1,725. Rounded down to the nearest $100 yields $1,700. Finally, because she has 2 dependents, she can deduct 50 x 2 = $100. Therefore, her state income tax is 1,700 - 100 = $1,600.

Answer: A

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