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

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

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

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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 [email protected] » 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 ### GMAT/MBA Expert GMAT Instructor Posts: 6896 Joined: Sat Apr 25, 2015 10:56 am Location: Los Angeles, CA Thanked: 43 times Followed by:29 members ### Re: To determine her state income tax last year, Elena computed 5 percent of her gross income, rounded the resulting fig by [email protected] » 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.