I think the answer is E.
Start by finding the average of 100 and 1%of annual income (I). This is equal to
(100+.01I)/2
Then, add 2% of annual income to this number to get the total tax due. We now have
.02I + (100+.01I)/2
.02I + 50 + .005I
50 + .025I
Then, since the decimal .025 is equal to 1/40, the bolded expression above is the same as answer choice E.
Start by finding the average of 100 and 1%of annual income (I). This is equal to
(100+.01I)/2
Then, add 2% of annual income to this number to get the total tax due. We now have
.02I + (100+.01I)/2
.02I + 50 + .005I
50 + .025I
Then, since the decimal .025 is equal to 1/40, the bolded expression above is the same as answer choice E.
