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

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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

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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

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Brent
Brent Hanneson - Creator of GMATPrepNow.com
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