Question

Tax Rate Change: Suppose a certain tax rate goes from 6% to 18%. Which of the following statements is NOT true?

a.The new tax rate is 12 percentage points greater than the old tax rate.
b.The new tax rate is 3 times the old tax rate. c.
c.The new tax rate is 300% greater than the old tax rate.
d.The new tax rate is 200% greater than the old tax rate.

Answer 1

The c statement is not true.

Explanation:

We need to check every statement to determine which one is false.

a. The old tax rate was 6% and the new one is 18%. The difference between the new and the old one will give us how much it's been increased. So 18-6=12, meaning the tax has increased 12%, so this statement is true.

b. If we multiply by 3 the old tax rate we get 6x3=18, which is the same as the new tax rate, so this statement is also true.

c. Increasing the tax rate 100% would mean multiplying by 2, since 100% is the same as the number, so adding that to the same number would double the amount. By the same logic, increasing it 200% would be the same as multiplying it by 3, and by 4 with a 300% increase. Since we already determined that the new tax was 3 times the old one, this statement is false, and the d. statement is true.