Before being simplified, the instructions for computing

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 + I/200

B. 50 + 3I/100

C. 50 + I/40

D. 100 + I/50

E. 100 + 3I/100

Answer: C
Source: GMAT prep test

Brent@GMATPrepNow · Answer

BTGModeratorVI wrote: ↑Fri Jun 05, 2020 11:44 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 + I/200 B. 50 + 3I/100 C. 50 + I/40 D. 100 + I/50 E. 100 + 3I/100 Answer: C Source: GMAT prep test 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

Scott@TargetTestPrep · Answer

BTGModeratorVI wrote: ↑Fri Jun 05, 2020 11:44 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 + I/200 B. 50 + 3I/100 C. 50 + I/40 D. 100 + I/50 E. 100 + 3I/100 Answer: C Solution: We are given that 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. We need to determine the formula for computing the tax for a person who earns “I” annual income. The expression is as follows: 0.02I + (100 + 0.01I)/2 2I/100 + (100 + I/100)/2 2I/100 + 100/2 + I/200 2I/100 + 50+ I/200 50 + 4I/200 + I/200 50 + 5I/200 50 + I/40 Answer: C

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Before being simplified, the instructions for computing

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