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
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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
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
Samir
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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
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.
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.