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GMAT prep income tax problem
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subhasis8877
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raviraushanjha
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Let the Annual Income be = I
A) 2% of Annual Income = 2I/100
B) Average of 100 currency and 1% of annual Income = (I/100 + 100) / 2
Total Income Tax = A + B
=2I / 100 + (I/100+100)/2
Simplify
= 4I/200 + I/200 + 10000/200
= 5I/200+ 10000/200
= I/40+ 50
I hope this clarifies.
A) 2% of Annual Income = 2I/100
B) Average of 100 currency and 1% of annual Income = (I/100 + 100) / 2
Total Income Tax = A + B
=2I / 100 + (I/100+100)/2
Simplify
= 4I/200 + I/200 + 10000/200
= 5I/200+ 10000/200
= I/40+ 50
I hope this clarifies.
