Income Tax

[JeetGulia]

Before being simplified, the instructions for computing income tax in country R were to add 2% of one's annual income to the average of 100 units of country R's currency and 1% 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

Ans C

[Rahul@gurome]

1% of I = I/100
2% of I = I/50
Average = I/50 + (100 + I/100)/2 = I/50 + 50 + I/200 = 5I/200 + 50 = I/40 + 50

The correct answer is[spoiler] (C)[/spoiler].

[klmehta03]

A= (0.02I)/100
B= {(0.01I+100)/2}
C=A+B
which after calculation
ans is C