Question

Last year Mr. John Q. Public received an inheritance. He paid $20\%$ in federal taxes on the inheritance, and paid $10\%$ of what he had left in state taxes. He paid a total of $\$10{,}500$ for both taxes. How many dollars was the inheritance?

$30{,}000$

$32{,}500$

$35{,}000$

$37{,}500$

$40{,}000$

Answer: D

Concepts:percentage linear equation

Difficulty rating: 1070

Solution:

After federal taxes, Mr. Public keeps $80\%$ of his inheritance.

State taxes take $10\%$ of that, which is $8\%$ of the inheritance.

The total tax is $20\% + 8\% = 28\%$ of the inheritance, so the inheritance is $\dfrac{10{,}500}{0.28} = 37{,}500.$

Thus, the correct answer is D.

2007 AMC 10A Problem 7

Answer: D

Difficulty rating: 1070

Solution:

Problem 7 in Other Years