2007 AMC 12A Problems/Problem 5

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The following problem is from both the 2007 AMC 12A #5 and 2007 AMC 10A #7, so both problems redirect to this page.

Problem

Last year Mr. Jon 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 $$10500 for both taxes. How many dollars was his inheritance?

$(\mathrm {A})\ 30000 \qquad (\mathrm {B})\ 32500 \qquad(\mathrm {C})\ 35000 \qquad(\mathrm {D})\ 37500 \qquad(\mathrm {E})\ 40000$

Solution

After paying his taxes, he has $0.8*0.9=0.72$ of the inheritance left. Since $10500$ is $0.28$ of the inheritance, the whole inheritance is $\frac{10500}{0.28}=37500\  \mathrm{(D)}$.

See also

2007 AMC 12A (ProblemsAnswer KeyResources)
Preceded by
Problem 4
Followed by
Problem 6
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
All AMC 12 Problems and Solutions
2007 AMC 10A (ProblemsAnswer KeyResources)
Preceded by
Problem 6
Followed by
Problem 8
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
All AMC 10 Problems and Solutions