Answer:
option (C) 50 + [tex]\frac{I}{40}[/tex]
Step-by-step 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
= [tex]\frac{100 + 0.01I}{2}[/tex]
Therefore,
Total income tax = 0.02 × I + [tex]\frac{100 + 0.01I}{2}[/tex]
or
= [tex]\frac{0.04I+100+0.01I}{2}[/tex]
= [tex]\frac{100}{2}+\frac{0.04I+0.01I}{2}[/tex]
= 50 + [tex]\frac{0.05I}{2}[/tex]
= 50 + [tex]\frac{5I}{2\times100}[/tex]
or
= 50 + [tex]\frac{1I}{2\times20}[/tex]
= 50 + [tex]\frac{I}{40}[/tex]
Hence, the correct answer is option (C) 50 + [tex]\frac{I}{40}[/tex]
