the question is quite confusing, I am not able to get to the solution
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?
Hi Santosh,
You just need to read the questions carefully here and translate stage by stage.
We need to add 2% of the monthly income to the AVERAGE of 100 units of currency and 1% of the annual income.
2% of the monthly income = 2I/100
Average of 100 units of currency and 1% of the annual income = (100 + I/100)/2
So 2I/100 + (100 + I/100)/2 —–> 50 + 2I/100 + I/200 —–> 50 + 5I/200 —–> 50 + I/40
Hope this helps!
