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

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. $$\1,700$$

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

by [email protected] » 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. $$\1,700$$

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