Before being simplified, the instructions for computing

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BTGmoderatorLU: Moderator; Posts: 2505; Joined: Sun Oct 15, 2017 1:50 pm; Followed by:6 members

Before being simplified, the instructions for computing

by BTGmoderatorLU » Wed Dec 19, 2018 2:48 pm

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Source: GMAT Prep

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 I?

A. 50 + I/200
B. 50 +3I/100
C. 50 + I/40
D. 100 + I/50
E. 100 + 3I/100

The OA is C

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Source: Beat The GMAT — Problem Solving | Wed Dec 19, 2018 2:48 pm

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Jay@ManhattanReview: GMAT Instructor; Posts: 3008; Joined: Mon Aug 22, 2016 6:19 am; Location: Grand Central / New York; Thanked: 470 times; Followed by:34 members

by Jay@ManhattanReview » Wed Dec 19, 2018 8:37 pm

BTGmoderatorLU wrote:Source: GMAT Prep

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 I?

A. 50 + I/200
B. 50 +3I/100
C. 50 + I/40
D. 100 + I/50
E. 100 + 3I/100

The OA is C

Pl. find it here: https://www.beatthegmat.com/income-tax-t277997.html

Hope this helps!

-Jay
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Manhattan Review

Locations: Manhattan Review Hyderabad | GMAT Prep Bangalore | GRE Prep Chennai | Himayatnagar GRE Coaching | and many more...

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[email protected]: Elite Legendary Member; Posts: 10392; Joined: Sun Jun 23, 2013 6:38 pm; Location: Palo Alto, CA; Thanked: 2867 times; Followed by:511 members; GMAT Score:800

by [email protected] » Thu Dec 20, 2018 7:38 am

Hi All,

This question can be solved by TESTing VALUES. I'm going to use the variable "J" instead of an "I" (since that might be mistaken for the number 1)...

We're told to add "2% of one's income" to "the average of 100 and 1% of one's income"

Let's TEST J = 100

So we're adding 2% of 100 to (100 + 1% of 100)/2....

2 + 101/2 =
2 + 50.5 =
52.5

So we're looking for an answer that equals 52.5 when J = 100. There's only one answer that matches...

Final Answer: C

GMAT assassins aren't born, they're made,
Rich

Contact Rich at [email protected]

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Scott@TargetTestPrep: GMAT Instructor; Posts: 8086; Joined: Sat Apr 25, 2015 10:56 am; Location: Los Angeles, CA; Thanked: 43 times; Followed by:29 members

by Scott@TargetTestPrep » Sun Feb 24, 2019 5:37 am

BTGmoderatorLU wrote:Source: GMAT Prep

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 I?

A. 50 + I/200
B. 50 +3I/100
C. 50 + I/40
D. 100 + I/50
E. 100 + 3I/100

The OA is C

We are given that 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. We need to determine the formula for computing the tax for a person who earns "I" annual income.

The expression is as follows:

0.02I + (100 + 0.01I)/2

2I/100 + (100 + I/100)/2

2I/100 + 100/2 + I/200

2I/100 + 50+ I/200

50 + 4I/200 + I/200

50 + 5I/200

50 + I/40

Answer: C

Scott Woodbury-Stewart
Founder and CEO
[email protected]