Before being simplified, the instructions for computing income tax in country r were to add 2 percent of one’s annual income to the

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

Answers

A

Explanation:

correct option is c. 50 + frac{I}{40}

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 =  frac{100 + 0.01 *I}{2}     .......................3

so tax is sum of equation 1 and 3

tax = 0.02 I + frac{100 + 0.01 *I}{2}

tax = 50 + frac{I}{40}

so correct option is c. 50 + frac{I}{40}

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