GMAT Prep

Expert replies

Jameschan168: Senior | Next Rank: 100 Posts; Posts: 37; Joined: Sun Aug 26, 2007 3:45 pm; Thanked: 1 times

by Jameschan168 » Fri Sep 07, 2007 10:29 pm

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 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 County 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

Like this post

Source: Beat The GMAT — Data Sufficiency | Fri Sep 07, 2007 10:29 pm

samirpandeyit62: Master | Next Rank: 500 Posts; Posts: 460; Joined: Sun Mar 25, 2007 7:42 am; Thanked: 27 times

by samirpandeyit62 » Sat Sep 08, 2007 4:59 am

2 % of I is I/50

avg of 100 + 1 % of I i.e. I/100 is

50 + I/200

so formula is I/50 + 50 +I/200

i,e 50 + I/40

so ans should be C

Regards
Samir

Like this post

Jameschan168: Senior | Next Rank: 100 Posts; Posts: 37; Joined: Sun Aug 26, 2007 3:45 pm; Thanked: 1 times

by Jameschan168 » Sat Sep 08, 2007 7:39 am

Ah I see. I tried plugging in numbers and I thought I had to give Currency R a value so my answer came out to be D. Thanks.

samirpandeyit62 wrote:2 % of I is I/50

avg of 100 + 1 % of I i.e. I/100 is

50 + I/200

so formula is I/50 + 50 +I/200

i,e 50 + I/40

so ans should be C

Like this post

Preetics: Junior | Next Rank: 30 Posts; Posts: 15; Joined: Sat Aug 25, 2007 11:02 pm; Location: India

by Preetics » Mon Sep 17, 2007 6:56 am

Hi

Have been trying to solve this problem and arrive at
"avg of 100 + 1 % of I i.e. I/100 is 50 + I/200"
Have been unsuccessful

Please help!!!

Like this post

Bharat: Senior | Next Rank: 100 Posts; Posts: 70; Joined: Sun Jul 22, 2007 11:43 pm; Thanked: 8 times

by Bharat » Mon Sep 17, 2007 8:56 pm

Try it this way:
If the annual income is I then:
1% = I/100 &
2% = I/50
Now read this statement
a. add 2 percent of one's annual income to
b. the average (arithmetic mean) of 100 units of R's currency and 1 percent of one's annual income

b. equates to: (100 + I/100)/2 = 50 + I/200
a. equate to: I/50 + value of b.
That is: I/50 + 50 + I/200 = 50 + I/40

Let me know if more details are needed.

Like this post

Preetics: Junior | Next Rank: 30 Posts; Posts: 15; Joined: Sat Aug 25, 2007 11:02 pm; Location: India

by Preetics » Tue Sep 18, 2007 11:35 pm

thanks a lot bharat!!! The problem seemed so simple after ur explanation that i feel dumb I could not understand it earlier!!!

Like this post

Post new topic Post Reply

• Page 1 of 1

GMAT Course Reviews

563 reviews

1168 reviews

431 reviews

359 reviews

147 reviews

5/5

5 Star (563 Reviews)

"Target Test Prep is the closest to the official version of the GMAT exam, about 99% accuracy in terms of the quality and quantity of information. The course has excellently created singular sets of focused lessons and tests for every possible topic that one could come across in the official GMAT exam."

"The TTP course maximizes the efficiency of the time you spend studying. It will take time and effort but I could almost guarantee that if you complete the course exactly as it is laid out you will get an amazing score. They also have a very responsive team willing to help with any questions you might have."

"TTP has two things that I think no other test prep company offers: A teaching approach that reinforces understanding and an attitude that will give you the mental preparedness needed to succeed on the test. TTP gives you a deep understanding of the concept you need to know while teaching you how to think."

Write a Review