Before being simplified, the instructions for computing income tax in Country $R$ were to add $2$ percent of one's

Question

Before being simplified, the instructions for computing income tax in Country $R$ were to add $2$ percent of one's annual income to the average (arithmetic mean) of $100$ units of Country $R$'s currency and $1$ percent of one's annual income. Which of the following represents the simplified formula for computing the income tax in Country $R$'s currency, for a person in that country whose annual income is $I?$

A. $50 + \dfrac{I}{200}$

B. $50 + \dfrac{3I}{100}$

C. $50 + \dfrac{I}{40}$

D. $100 + \dfrac{I}{50}$

E. $100 + \dfrac{3I}{100}$

Answer: C

Source: GMAT Prep

Brent@GMATPrepNow · Answer

VJesus12 wrote: ↑Thu Jul 22, 2021 3:33 am Before being simplified, the instructions for computing income tax in Country $R$ were to add $2$ percent of one's annual income to the average (arithmetic mean) of $100$ units of Country $R$'s currency and $1$ percent of one's annual income. Which of the following represents the simplified formula for computing the income tax in Country $R$'s currency, for a person in that country whose annual income is $I?$ A. $50 + \dfrac{I}{200}$ B. $50 + \dfrac{3I}{100}$ C. $50 + \dfrac{I}{40}$ D. $100 + \dfrac{I}{50}$ E. $100 + \dfrac{3I}{100}$ Answer: C Source: GMAT Prep 2 percent of one’s annual income If income = i, then 2% of income = (2/100)i = 0.02i average of 100 units of country R’s currency and 1 percent of one’s annual income 1 percent of one’s annual income = (0.01)i So, average of 100 units of country R’s currency and 1 percent of one’s annual income = (100 + 0.01i)/2 = 50 + 0.005i So, TOTAL TAX = 0.02i + (50 + 0.005i) = 0.025i + 50 = (25/1000)i + 50 = (1/40)i + 50 = i/40 + 50 = C Cheers, Brent

swerve · Answer

VJesus12 wrote: ↑Thu Jul 22, 2021 3:33 am Before being simplified, the instructions for computing income tax in Country $R$ were to add $2$ percent of one's annual income to the average (arithmetic mean) of $100$ units of Country $R$'s currency and $1$ percent of one's annual income. Which of the following represents the simplified formula for computing the income tax in Country $R$'s currency, for a person in that country whose annual income is $I?$ A. $50 + \dfrac{I}{200}$ B. $50 + \dfrac{3I}{100}$ C. $50 + \dfrac{I}{40}$ D. $100 + \dfrac{I}{50}$ E. $100 + \dfrac{3I}{100}$ Answer: C Source: GMAT Prep Annual Income = i $2\%$ of annual income $= 0.02i$ Average of $100 R$ and $1\%$ of annual income $= \dfrac{100+0.01i}{2}$ $\dfrac{100+0.01i}{2} + 0.02i$ $(50+0.005i) + 0.02i$ $50 + 0.025i$ $50 + \dfrac{25i}{1000}$ $50 + \dfrac{5i}{200}$ $50 + \dfrac{i}{40}$ Therefore, C

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Before being simplified, the instructions for computing income tax in Country \(R\) were to add \(2\) percent of one's

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Re: Before being simplified, the instructions for computing income tax in Country \(R\) were to add \(2\) percent of one

Re: Before being simplified, the instructions for computing income tax in Country \(R\) were to add \(2\) percent of one

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