AMC 10 Step by Step

2004 AMC 10A Problem 3

P1-10~1 minPrint

Alicia earns 20 dollars per hour, of which 1.45%1.45\% is deducted to pay local taxes. How many cents per hour of Alicia's wages are used to pay local taxes?

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Key insight

The answer must be in cents, so change 20 dollars into 2000 cents first. Then 1.45 percent of 2000 is 29.

Solution

1. The question asks for cents, so switch to cents right away. One dollar is 100100 cents, so 2020 dollars is 20002000 cents.
2. Write the percent as a decimal: 1.45%=1.45100=0.01451.45\% = \dfrac{1.45}{100} = 0.0145.
3. Multiply:
0.0145×2000=29.0.0145 \times 2000 = 29.

So 2929 cents of each hour's pay goes to local taxes.

The answer is (E) 29\boxed{\textbf{(E)}\ 29}.

Why this works

Taking a percent of something is multiplying by a decimal. The only real decision is which unit to use, and using the unit the question asks for from the start avoids an error of 100100 at the end. When the answer choices differ only by moving the decimal point, the problem is testing units.

Alternative approach

Estimate. 1%1\% of 20002000 cents is 2020 cents, so 1.45%1.45\% should be a little more than 2020 cents. Only 2929, choice (E), is anywhere close.

Concise solution

A shorter write-up, the way contest solutions are usually written. It may take a different route from the solution above.

The question asks for cents, so express the wage in cents before taking the percentage: 2020 dollars is 20002000 cents.

Now 1.45%=0.01451.45\% = 0.0145, and
0.0145×2000=29.0.0145 \times 2000 = 29.

The tax withheld is 2929 cents per hour, so the answer is (E) 29\boxed{\textbf{(E)}\ 29}.

Review in the AoPS books

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Problem © Mathematical Association of America (MAA), American Mathematics Competitions. Reproduced for non-commercial educational use. Solution and commentary are original to this site. Also appeared as 2004 12A #1.