Before being simplified, the instructions for computing income tax in Country R were to add 2 percent f 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, or a person in that country whose annual income is I?
A 50 + I/200
B 50 + 3I/100
C 50 + I/4
D 100 + I/50
E 100 + 3I/100
please, help !!!
answer C
gmatprep1
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Can u pls check the choices. esp C .. looks like there is a typo.
I think it should be I/40 + 50
I think it should be I/40 + 50
- gmat740
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2 percent of one's annual income = I *2/100
average (arithmetic mean) of 100 units of Country R's currency and 1 percent of one's annual income
[100 + I/100 ]/2 = 50 +I/200
Now Tax = I*2/100 +{ 50 + I/200 }
= 50 + I/40
average (arithmetic mean) of 100 units of Country R's currency and 1 percent of one's annual income
[100 + I/100 ]/2 = 50 +I/200
Now Tax = I*2/100 +{ 50 + I/200 }
= 50 + I/40
Thanks for the explanation. Questions about taxes put me on edge, especially in April! (tax season in US)gmat740 wrote:2 percent of one's annual income = I *2/100
average (arithmetic mean) of 100 units of Country R's currency and 1 percent of one's annual income
[100 + I/100 ]/2 = 50 +I/200
Now Tax = I*2/100 +{ 50 + I/200 }
= 50 + I/40
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