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PS:dint even understand the question well!

by ajas » Sun Apr 18, 2010 10:04 am
Before being simplified , the instruction for computing tax in country R were to add 2% of ones annual income to the average(arithmetic mean) of 100 units of country R's currency and 1% of one's annual income.Which of the following represents the simplified formula for calculating 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


Can someone please explain to me?

Thanks!
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by outreach » Sun Apr 18, 2010 11:06 am
https://www.beatthegmat.com/1-before-bei ... 24665.html
ajas wrote:Before being simplified , the instruction for computing tax in country R were to add 2% of ones annual income to the average(arithmetic mean) of 100 units of country R's currency and 1% of one's annual income.Which of the following represents the simplified formula for calculating 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


Can someone please explain to me?

Thanks!
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by Rahul@gurome » Mon Apr 19, 2010 11:34 pm
Solution
Let the currency of country R be c.
Annual income is given as cI.
So 1% of annual income is c(1/100)XI = c(I/100).
So the average of 100 units of currency and the above quantity is {c100+c(I/100)}/2 = c(100+ I/100)/2 = c(50+I/200).
Also 2% of annual income is c(2/100)XI = c(2I/100) .
Hence the income tax is given by c(50+I/200) + c(2I/100) = c(50+I/200+2I/100)=c(50+5I/200) = c(50+I/40).

So the simplified formula for income tax in country R's currency is 50+I/40 .
The correct answer is C.
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