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Formula

by gmat740 » Mon Jun 15, 2009 8:25 am
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 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 A?
A. 50+A/200
B. 50+3A/100
C. 50+A/40
D. 100+A/50
E. 100+3A/100
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by S.A » Mon Jun 15, 2009 9:13 am
here's the answer - https://www.beatthegmat.com/1-before-bei ... 24665.html
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Re: Formula

by jakesing » Mon Jun 15, 2009 9:15 am
gmat740 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 (arithmetic mean) 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 A?
A. 50+A/200
B. 50+3A/100
C. 50+A/40
D. 100+A/50
E. 100+3A/100
Formula: 2%*A + (100+1%*A)/2 = .02A + (100+.01A)/2

= .02A + 50 + .005A = 50 +.025A = 50 + A/40

.025 = 2.5/100. Divide both by 2.5 and you get 1/40.
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