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arithmetic

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by thephoenix » Sat Jan 30, 2010 10:50 pm
Income = i
Tax = 2% of i + Average of (100, 1% of i) = 0.02i + (100+0.01i)/2 = 0.02i + 50 + 0.005i = 50 + 0.025i = 50 + i/40
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by ajith » Sat Jan 30, 2010 11:31 pm
Say Total income = T

2% of total income = 2T/100
Arithmetic Mean of 100 and 1% of income = 1/2 (T/100+100) = T/200 + 50

Total tax = 50+ 5T/200 = 50 +T/40
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