Another one.. For this one I do not understand the wording of the question. Please someone help me understand

Before being simplified, the instruction for computing income tax in Country R were to add 2% of one's annual income to the average (arimethic 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 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: C

Please let me know how you get C as the answer. Thanks

SB

Please read (and follow!) the guidelines in the stickies. GMATPrep problems have their own folders. Also, your subject line should be the first 5-8 words of the problem itself. I'll move this over to the right folder for you this time but please remember for next time! Thanks. :)

2% of income (I) = (2/100)I

1% of income (I) = (1/100)I
100 units of R's currency = 100
Average of 100 units of R's currency and 1% of I = [100+(1/100)I]/2

Average added to 2% of I = (2/100)I+[50+(1/200)I]

and simplify to get:

50 + (I/40)

Answer is C.

well played.

i wanted to fill in the following hole, which might be problematic for some to follow (especially given the format here, which, to say the least, is not ideal for typing fractional expressions):



the quantity [100+(1/100)I]/2 in the first problem has been simplified to [50+(1/200)I], the right-hand part of the second expression.