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State Y charges a 4 % tax on all residential household telephone lines
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24 Jan 2023, 09:51
24 Jan 2023, 09:51
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Question Stats:
38% (01:52) correct
61% (01:28) wrong based on 13 sessions
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State Y charges a 4 % tax on all residential household telephone lines each month, rounded to the nearest penny. Customer A spends less than $50 each month on his telephone bill, including tax.
A. The quantity in Column A is greater.
B. The quantity in Column B is greater.
C. The two quantities are equal.
D. The relationship cannot be determined from the information given
Quantity A |
Quantity B |
$48 |
The cost of Customer A's telephone bill before taxes |
A. The quantity in Column A is greater.
B. The quantity in Column B is greater.
C. The two quantities are equal.
D. The relationship cannot be determined from the information given
Re: State Y charges a 4 % tax on all residential household telephone lines
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25 Jan 2023, 02:40
25 Jan 2023, 02:40
Expert Reply
OE
The total value of the bill is equal to the original value of the bill, plus 4 % of that original value. To use algebra, T = O + 0.04O = 1.040, where O is the original value of the bill (pre-taxes) and T is the total cost of the bill (including taxes).
The question states that for Customer A, T < 50. Therefore, 1.04O < 50, and 0<$50/1.04=$48.07
Therefore, the original bill could have cost $48.07 (tax of $1.92), or $48 (tax of $1.92), or $30 (tax of $1.20). Thus, the relationship cannot be determined from the information given.
The total value of the bill is equal to the original value of the bill, plus 4 % of that original value. To use algebra, T = O + 0.04O = 1.040, where O is the original value of the bill (pre-taxes) and T is the total cost of the bill (including taxes).
The question states that for Customer A, T < 50. Therefore, 1.04O < 50, and 0<$50/1.04=$48.07
Therefore, the original bill could have cost $48.07 (tax of $1.92), or $48 (tax of $1.92), or $30 (tax of $1.20). Thus, the relationship cannot be determined from the information given.
gmatclubot
Re: State Y charges a 4 % tax on all residential household telephone lines [#permalink]
25 Jan 2023, 02:40
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