if you want to remove an article from website contact us from top.

# when leo imported a certain item, he paid a 7 percent import tax on the portion of the total value of the item in excess of \$1,000. if the amount of the import tax that leo paid was \$87.50, what was the total value of the item?

Category :

### Mohammed

Guys, does anyone know the answer?

get when leo imported a certain item, he paid a 7 percent import tax on the portion of the total value of the item in excess of \$1,000. if the amount of the import tax that leo paid was \$87.50, what was the total value of the item? from screen.

## When Leo imported a certain item, he paid a 7 percent import tax on the portion of the total value of the item in excess of 1000. If the amount of the import tax that Leo paid was 87.50, what was the total value of the item ?

Click here👆to get an answer to your question ✍️ When Leo imported a certain item, he paid a 7 percent import tax on the portion of the total value of the item in excess of 1000. If the amount of the import tax that Leo paid was 87.50, what was the total value of the item ?

Question

A

B

C

D

E

## \$ 2750

Easy Open in App Solution Verified by Toppr

Correct option is C)

As given in the problem,

Tax paid by Leo = 7% of Excess Amount which is given to be \$87.50

Thus, 100 7 ​ ×x=87.50 Therefore, x=1250

This amount must be in excess of \$1000

So, the total value of the item must be \$1000+\$1250=\$2250

(option C)

2 0

स्रोत : www.toppr.com

## When Leo imported a certain item, he

Source: Official Guide for the GMAT 13th Ed. Problem Solving; #11 Official Guide for the GMAT 2015 14th Ed. Problem Solving; #11

▲ 5

## When Leo imported a certain item, he

### 3 Explanations

I have read the response to the query of Rachel L Little. But still i don't get to digest the logic behind the provided explanation. I know that it is straight forward but still appears to be a little twisted.

I fail to grasp the point that how the 7% tax turns out to be the part of the amount over and above the \$10000?

Aug 10, 2017 • Comment

Jonathan , Magoosh Tutor

The question tells us that 7% is the tax on the part over 1,000:

"When Leo imported a certain item, he paid a 7 percent import tax on the portion of the total value of the item in excess of \$1,000."

So, he pays 7% of the value that is in excess of 1,000.

7% of that excess is 87.50. Let "x" be the excess.

.07x = 87.50 So x = 1,250.

1,250 is the value over 1,000. So the total value is 1,000 + 1,250.

Sep 4, 2017 • Reply ▲ 2 Shakib Huq Hi all,

The algebraic solution is quite simple as well which is as follows:

Let Total Value be X

7/100(X-1000)=87.5 7(X-1000)=8750 X-1000=1250

X=2250 which is Answer Choice (C)

Cheers!

Feb 20, 2016 • Comment

▲ 3

Mike McGarry, Magoosh Tutor

Dec 26, 2013 • Comment

Phil McDonald

How did you quickly figure out 12.50 was 1% of the unknown? I resorted to long division which I know I need to avoid..

Jonathan , Magoosh Tutor

Hi Phil!

Good question! Actually, long division IS what you would do there. But it's pretty quick "long" division, since you're only dividing by a single-digit number. You're right that the GMAT wouldn't require lengthy, time-consuming calculations, but this kind of long division could be necessary. I hope that helps :)

Rachel L Little

I'm a little confused as to the reasoning behind finding the answer. Math is not my strong point, so please bear with me - but why did you choose/know that 100% would be the excess above the \$1000 tax free portion? In other words, how did you know that 100% would give you the amount that was taxed 7% ?

Cydney Seigerman, Magoosh Tutor

Hi Rachel :)

Happy to help! The tax only applies to the part of the cost of the item above \$1000. In other words, the first \$1000 of the cost is not taxed, while the amount after \$1000 is taxed. This means that the 7% tax (= \$87.50) is 7% of the part of the price that was taxed or, to say it another way 87.50 is 7% of the taxed part of the item:

87.5 / taxed part = 0.07

So, when we solve for the unknown in this equation, we end up with the total taxed part of the item, the cost in excess of \$1000. At that point, to determine the total price of the item, we must add that first \$1000 of the price to the taxed portion of \$1250.

Does that make sense, Rachel? I hope this clears up your doubts! If not, please let us know :)

You must have a Magoosh account in order to leave an explanation.

### Official GMAT Material

Official Guide for GMAT Review 2016

Official Guide for the GMAT 13th Ed.

Official Guide for the GMAT 2015 14th Ed.

Nova's GRE Prep

Official Guide for the GMAT 12th Ed.

Revised GRE PDF 2nd Ed.

### Section 5.3 Problem Solving

1. A project scheduled...

2. For which of the fo...

3. Rectangular Floors ...

4. A case contains c c...

5. The sum of prime nu...

6. A rainstorm increas...

7. On the graph above,...

8. When 1/10 percent o...

9. Which of the follow...

10. Raffle tickets num...

11. When Leo imported ...

12. The numbers of car...

13. A rectangular gard...

14. If |y-1/2|<11/2, w...

15. At a supermarket, ...

16. On Monday, a perso...

17. 0.1 + (0.1) + (0.1) =

18. A carpenter constr...

19. A bakery opened ye...

20. What is the 25th d...

21. 150 is what percen...

22. The ratio 2 to 1/3...

23. Running at the sam...

24. Of the five coordi...

25. Of the 50 research...

26. If n is a prime nu...

27. 1/1+3 - 1/1+1/2 =

28. In the figure abov...

29. A rope 40 feet lon...

30. A students average...

31. Lucy invested \$10,...

32. If the quotient a/...

33. The dots on the gr...

34. How many minutes d...

35. (16)(20) + (8)(32) =

36. If O is the center...

37. Which of the follo...

38. If Juan takes 11 s...

39. John has 10 pairs ...

40. What is the lowest...

41. 1/0.750-1 =

42. If 1.5/0.2+x = 5, ...

43. In the figure abov...

44. If n is an integer...

45. If 4 is one soluti...

46. The sum 7/8 + 1/9 ...

47. If x=1-3t and y=2t...

48. 1-(1/2-2/3)=

49. Car X averages 25....

50. How many integers ...

51. If y is an integer...

52. 80 + 125 =

53. The average (arith...

54. In the equation ab...

55. In the table above...

स्रोत : gmat.magoosh.com

## When Leo imported a certain item, he paid a 7 percent import : Problem Solving (PS)

When Leo imported a certain item, he paid a 7 percent import tax on the portion of the total value of the item in excess ...

Forum Home GMAT Quantitative

Problem Solving (PS)

Unanswered Active Topics Register GMAT Club Tests Decision Tracker My Rewards New posts New comers' posts

Free GMAT Club Tests for 24 Hrs on Thanksgiving Day Nov 24th

## EVENTS & PROMOTIONS

Nov

24

Harrison's Journey to a GMAT 760 Score

Nov

24

Nov

24

All GMAT Club Tests are free and open on Thursday, November 24th, in celebration of Thanksgiving Day

Nov

25

Shubhankar Scored 760 (Q50/V42) on the GMAT Using TTP's Accelerated Study Plan.

Nov

25

Free full-length test!

Nov

26

Timing & Test Taking Strategy to score 750+ on GMAT (Live Webinar)​

Nov

26

TGI Black Friday - Save up to 50% on Online GMAT Prep

Nov

26

Free GMAT CR Webinar

Nov

26

All GMAT Practice tests at just \$14.95

Nov

27

The Art of Involved and Evolved Reading for RC (Live Webinar)

Nov

27

Master 700-level PS and DS Questions using the Remainder Equation

Nov

27

Q&A with ISB Adcom | Hosted by Experts' Global

Nov

28

Magoosh Black Friday Sale

Nov

28

Don't miss Manhattan Prep's biggest sale of the year!

Nov

28

### Don't miss Manhattan Prep's biggest sale of the year!

08:00 PM EST - 10:00 PM EST

Get 25% off select GMAT, GRE for MBA, and Executive Assessment prep, only for a limited time. Already headed to business school? Save 30% on all Business Fundamentals powered by Kaplan courses. Offers end November 28th.

24

### Harrison's Journey to a GMAT 760 Score

12:00 PM EST - 01:00 PM EST

Learn how Harrison achieved a 760 on the GMAT using Target Test Prep's Structured Study Plan.

Join the Chat Nov

24

### Deferred Applicant with SIA Admissions

09:30 PM IST - 10:00 PM IST

Join us Live on GMAT Club's Instagram with Susan Bershaj Founder and CEO of SIA Admissions. She will be discussing Deferred Applicants.

24

### All GMAT Club Tests are free and open on Thursday, November 24th, in celebration of Thanksgiving Day

12:01 AM PST - 11:59 PM PST

This Thursday, GMAT Club Tests will be Absolutely Free! Including all the Quizzes, Questions, and Tests. 12 AM - 11:59 PM PDT

25

### Shubhankar Scored 760 (Q50/V42) on the GMAT Using TTP's Accelerated Study Plan.

03:00 PM EST - 04:00 PM EST

Shubhankar studied for 6 more weeks using TTP’s Accelerated Study Plan, and on test day, he finally got the improvement he’d been seeking, scoring 760, his GMAT goal.

25

### Free full-length test!

08:00 PM PST - 09:00 PM PST

Video explanations + diagnosis of 10 weakest areas + one-week access to 10 SC e-books and 200 short videos!

Register Now Nov

26

### Timing & Test Taking Strategy to score 750+ on GMAT (Live Webinar)​

05:30 AM PST - 07:30 AM PST

Many students have a tough time understanding how the GMAT algorithm works and hence, fail to fine-tune their preparation to get the maximum out of it. Learn how to decode the algorithm and modify your prep strategy to score GMAT 750+!

Grab Now! Nov

26

### TGI Black Friday - Save up to 50% on Online GMAT Prep

05:30 AM PST - 07:30 AM PST

And we’re BLACK with a Bang! Start your GMAT Prep today with the only truly personalized course that offers an average 100+ pts. improvement according to verified reviews on GMAT Club at a price starting as low as \$129. Grab now!

26

### Free GMAT CR Webinar

07:00 AM PST - 09:00 AM PST

Attend this webinar to learn two proprietary ways to Pre-Think assumptions and ace GMAT CR in 10 days.

26

### All GMAT Practice tests at just \$14.95

08:00 PM PST - 09:00 PM PST

Use this Black Friday to make your GMAT prep BRIGHTER. Use Code - GMATBFCM to get any individual practice test at just \$14.95.

27

### The Art of Involved and Evolved Reading for RC (Live Webinar)

05:30 AM PST - 07:30 AM PST

Did you know 85% of the RC questions are inference based? Learn the Art of Involved & Evolved Reading and make sure you never get an RC question wrong again!​

Register Now Nov

27

### Master 700-level PS and DS Questions using the Remainder Equation

07:00 AM PST - 09:00 AM PST

Attend this webinar to learn the core NP concepts and a structured approach to solve 700+ Number Properties questions in less than 2 minutes.

Register Nov

27

### Q&A with ISB Adcom | Hosted by Experts' Global

06:00 PM IST - 07:30 PM IST

Ask Me Anything session with ISB Admissions Team • How to build a Strong application to ISB • Know more about Holistic Evaluation at ISB - The weightage assigned to different aspects of your profile and more.

Save Now! Nov

28

### Magoosh Black Friday Sale

स्रोत : gmatclub.com

Do you want to see answer or more ?
Mohammed 8 day ago

Guys, does anyone know the answer?