dreamv wrote: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 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 + 30I/100
Let I = 200 units of currency.
The tax is the SUM of two values:
2% of the income AND
the average of 100 units of currency and 1% of the income.
2% of the income = .02(200) = 4.
The average of 100 units of currency and 1% of the income = (100 + .01(200)) / 2 = 102/2 = 51.
Tax = 4+51 = 55. This is our target.
Now we plug I=200 into the answers to see which yield our target of 55.
Only answer choice
C works:
50 + I/40 = 50 + 200/40 = 55.
The correct answer is
C.
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