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

[Gmat_mission]

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

[Brent@GMATPrepNow]

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