Question

Before being simplified, the instructions for computing income tax in country R were to add 2 percent of one's annual income to the average (arithmetic mean) of 100 units of country 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 + (3I/100)c) 50 + (I/40)d) 100 + (I/50)e) 100 + (3I/100)

Answer 1

correct option is c. 50 +
`(I)/(40)`

Step-by-step explanation:

we know that

2 percent of annual income = 0.02 I .....................1

and

1 percent of annual income = 0.01 I ........................2

and

so we take average i.e arithmetic mean of 1 percent of annual income and 100 units of country currency

so

average =
`(100 + 0.01 *I)/(2)` .......................3

so tax is sum of equation 1 and 3

tax = 0.02 I +
`(100 + 0.01 *I)/(2)`

tax = 50 +
`(I)/(40)`

so correct option is c. 50 +
`(I)/(40)`