Language problem

[rah_pandey]

Can somebody explain what does this question mean.....

Before being simplified,the instructions for computing income tax in country R were to add 2% of one's annual income to the average(arithmetic mean)of 100 units of country R's currency and 1% of one's annual income.What is the simplified formula for computing income tax, in R's currency, for a person whose incme is I?

This is from GMAT prep

[p2pg]

2% of I + 1/2(100+1% OF I)

2I/100 + 1/2(100+I/100)

Simplifying..
50 + I/40

Is that correct?

[rah_pandey]

great!!! you rock