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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

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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

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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

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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!!!

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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.

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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!!!

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