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

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Gmat_mission: Legendary Member; Posts: 1622; Joined: Thu Mar 01, 2018 7:22 amFollowed by: 2 members

by Gmat_mission » Sun Oct 17, 2021 12:17 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. $\$1,700$

Answer: A

Source: GMAT Prep

Source: Beat The GMAT — Problem Solving | Sun Oct 17, 2021 12:17 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

by Brent@GMATPrepNow » Sun Oct 17, 2021 5:31 am

Gmat_mission wrote: ↑
Sun Oct 17, 2021 12:17 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. $\$1,700$

Answer: 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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