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Require Help - How to solve this problem

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Require Help - How to solve this problem

by AmitPareek » Mon Dec 30, 2013 8:41 am
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by theCodeToGMAT » Mon Dec 30, 2013 9:03 am
2/100 (I) + ( 100 + 1/100 * I)/2

I/50 + 50 + I/200

50 + (4I+I)/200

50 + I/40
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by AmitPareek » Mon Dec 30, 2013 10:18 pm
Trick was to read the problem understanding the break.
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by GMATGuruNY » Mon Dec 30, 2013 10:46 pm
Before being simplified, the instructions for computing income tax in Country Rwere 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 I?
(A) 50+I/200
(B) 50+3I/100
(C) 50+I/40
(D) 100+I/50
(E) 100+3I/100

OA C
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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