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Simplified Formula for Tax

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Simplified Formula for Tax

by sanjana » Wed Oct 14, 2009 10:03 pm
Before being simplified,the instructions for computing the IT in country K were to add 2% of the annual income to average of 100 units of country K'S currency and 1% of annual income.Which of the following represents the simplified formula for computing the IT for a person with annual income I?

a)50 + I/200
b)50 + 3I/100
c)50 + I/40
d)50 + I/50
e)50 + 3I/100

[spoiler]OA : C[/spoiler]

Not able to understand what "2% of the annual income to average of 100 units of country K'S currency" means?
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by xcusemeplz2009 » Thu Oct 15, 2009 3:39 am
annual income=I

1% of I=I/100
100 unit

avg of bth=[(I/100)+100]/2=(I/200)+50

adding 2%ofI i.e 2I/100 to avg is same as (2I/100)+(I/100)+50=50+(I/40)
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