59.4k views
4 votes
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/200B. 50 + 3I/100C. 50 + I/40D. 100 + I/50E. 100 + 3I/100

1 Answer

4 votes

Answer:

option (C) 50 +
(I)/(40)

Explanation:

Data provided :

income tax = 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

Annual income = I

Now,

2% of annual income = 0.02 × I

and,

the average of 100 units of Country R’s currency and 1 percent of one’s annual income

=
(100 + 0.01I)/(2)

Therefore,

Total income tax = 0.02 × I +
(100 + 0.01I)/(2)

or

=
(0.04I+100+0.01I)/(2)

=
(100)/(2)+(0.04I+0.01I)/(2)

= 50 +
(0.05I)/(2)

= 50 +
(5I)/(2*100)

or

= 50 +
(1I)/(2*20)

= 50 +
(I)/(40)

Hence, the correct answer is option (C) 50 +
(I)/(40)

User Pjz
by
7.6k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories