AMC 8 Daily Practice Round 8

Complete problem set with solutions and individual problem pages

Problem 2 Medium

A restaurant has an average monthly revenue of 200,000 dollars. According to regulations, the restaurant must pay a business tax of 5\% of its revenue, and also pay an urban construction fee equal to 7\% of the business tax.

What is the total amount of business tax and urban construction fee the restaurant should pay in one year?

  • A.

    108,400 dollars

  • B.

    128,400 dollars

  • C.

    157,400 dollars

  • D.

    176,400 dollars

  • E.

    288,000 dollars

Answer:B

Business tax: 20 \times 12 \times 5\% = 12 \quad (\text{ten thousand dollars})

Urban construction fee: 12 \times 7\% = 0.84 \quad (\text{ten thousand dollars})

Therefore, the total amount of business tax and urban construction fee the restaurant should pay in one year is: 12 + 0.84 = 12.84 \quad (\text{ten thousand dollars})

Related Problems
Problem 1 AMC 8 Daily Practice Round 8
Problem 3 AMC 8 Daily Practice Round 8
Problem 4 AMC 8 Daily Practice Round 8
Problem 5 AMC 8 Daily Practice Round 8
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