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
Solve 700-Level Algebra Qs In 90 Secs!
Master 700-level Inequalities and Absolute Value Questions
Attend this free GMAT Algebra Webinar and learn how to master the most challenging Inequalities and Absolute Value problems with ease.
To determine her state income tax last year, Elena computed 5 percent of her gross income, rounded the resulting figure
This topic has expert replies
-
BTGmoderatorDC
- Moderator
- Posts: 7187
- Joined: Thu Sep 07, 2017 4:43 pm
- Followed by:23 members
Timer
00:00
Your Answer
A
B
C
D
E
Global Stats
GMAT/MBA Expert
-
[email protected]
- GMAT Instructor
- Posts: 16201
- Joined: Mon Dec 08, 2008 6:26 pm
- Location: Vancouver, BC
- Thanked: 5254 times
- Followed by:1268 members
- GMAT Score:770
Elena computed 5 percent of her gross income, rounded the resulting figure down to the nearest $100....BTGmoderatorDC wrote: ↑Sun Sep 11, 2022 5:56 amTo 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
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
GMAT/MBA Expert
-
[email protected]
- GMAT Instructor
- Posts: 6896
- Joined: Sat Apr 25, 2015 10:56 am
- Location: Los Angeles, CA
- Thanked: 43 times
- Followed by:29 members
Solution:BTGmoderatorDC wrote: ↑Sun Sep 11, 2022 5:56 amTo 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
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
Scott Woodbury-Stewart
Founder and CEO
[email protected]
See why Target Test Prep is rated 5 out of 5 stars on BEAT the GMAT. Read our reviews
