AMC 10 · 2004 · #1

Grade 6 arithmetic
percentageunit-conversion dimensional-analysis ↑ Prerequisites: decimal-arithmetic
📏 Medium solution 💡 1 insight
Problem
Alicia earns 20 dollars for each hour she works. Of that hourly pay, 1.45% is taken out for local taxes. Find how many cents of each hour's pay go to local taxes.

Pick an answer.

(A)
0.0029
(B)
0.029
(C)
0.29
(D)
2.9
(E)
29
How to solve
Strategy Analyze the Units

The whole problem turns on units (Tool #8): the wage is given in dollars but the answer is wanted in cents, and the tax rate is a percent. If you convert the wage to cents first and then take the percent, the answer comes out in cents directly. The trap is to compute 1.45% of 20andstopat20 and stop at0.29, forgetting to turn dollars into cents — that lands on choice (C). Tool #3 (Eliminate Possibilities) helps because every choice is the same digits 29 shifted by a power of ten, so only the correct unit handling picks the right one.

1STEP 1

Convert the wage to cents

The answer is wanted in cents, so convert the wage first: 2000 cents.

20 dollars = 20×100 = 2000 cents
2STEP 2

Take 1.45% of the wage

A percent is a rate per hundred, so taking it gives 29 cents.

0.0145×2000 = 1.45/100×2000 = 1.45×20 = 29
3STEP 3

Match to a choice and rule out the trap

Every other choice is the same digits with a misplaced decimal, so the answer is 29, choice (E).

29 cents → (E)
Answer
29
A sanity check on size: 1.45% is close to 1%, and 1% of 2000 cents is 20 cents, so the tax should be a little over 20 cents. The value 29 cents fits that estimate, while 0.29 or 2.9 cents would be far too small for a percent of 2000 cents. A tax that is only a few hundredths of a cent (choices A and B) is not sensible for a rate near 1% of two thousand cents.
💡Key takeaway

Convert to the units the question asks for first, then take the percent — here that turns $20 dollars into 2000 cents, and 1.45% of 2000 is 29 cents.

  • Convert the wage to cents
  • Take 1.45% of the wage
  • Match to a choice and rule out the trap