BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem

A Word Problem

This topic has expert replies
Post new topic Post Reply
Previous Topic Next Topic
Senior | Next Rank: 100 Posts
Posts: 80
Joined: Mon Feb 02, 2009 6:36 am
Thanked: 10 times

A Word Problem

by billzhao » Mon Feb 09, 2009 4:46 pm
Before bing simplified, the instructions for computing income tax in Country X were to add 2 percent of one's annual income to the average (arithmetic mean) of 100 units of 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+I*3/100
C. 50+I/40
D. 100+I/50
E. 100+I*3/100

my answer is E. Can someone help to explain?

Thanks!
Yiliang
Top
Source: — Problem Solving |
Master | Next Rank: 500 Posts
Posts: 158
Joined: Tue Sep 30, 2008 8:47 am
Thanked: 23 times
Followed by:1 members
GMAT Score:660

by DeepakR » Mon Feb 09, 2009 5:15 pm
I am getting the same. Is that correct ?
Is it 2I/100 + 100 + I/100 = (100 + (3I/100)) = E

- Deepak
Top
Master | Next Rank: 500 Posts
Posts: 392
Joined: Thu Jan 15, 2009 12:52 pm
Location: New Jersey
Thanked: 76 times

by truplayer256 » Mon Feb 09, 2009 5:38 pm
I'm getting C.
(100+.01I)/(2)+.02I=50+I/40
Remember that it says the arithmetic mean of 1 percent of the annual income and the 100 R Units. So it'd be .01I+100/2..
Top
Senior | Next Rank: 100 Posts
Posts: 80
Joined: Mon Feb 02, 2009 6:36 am
Thanked: 10 times

by billzhao » Mon Feb 09, 2009 8:25 pm
truplayer256, your answer is correct. i did not read the description carefully. Thanks!
Yiliang
Top
Master | Next Rank: 500 Posts
Posts: 158
Joined: Tue Sep 30, 2008 8:47 am
Thanked: 23 times
Followed by:1 members
GMAT Score:660

by DeepakR » Tue Feb 10, 2009 5:43 pm
Before being simplified, the instructions for computing income tax in Country X were to add 2 percent of one's annual income [b]to the average (arithmetic mean) of 100 units of R's currency and 1 percent of one's annual income. [/b]

Actually its like adding A to B, where you have A is 2% annual income and
B= Avg arithmetic mean of (100 + 1%annual income)
Consider (eg. Avg arithmetic mean of x and y= (x+y)/2)
similarly, B= (100 + 1% annual income)/2

Now, we know Annual income = I hence,

B=(100 + (I/100))/2=50+(0.5I)/100

Now A + B = (2I/100) + 50 + (0.5I/100) = 50 + (2.5I/100)=
50 + (I/40)=Ans.) C
Top
Post new topic Post Reply
• Page 1 of 1