GMAT Question of the Day - Daily to your Mailbox; hard ones only

 It is currently 24 Sep 2018, 18:24

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Before being simplified, the instructions for computing

Author Message
Senior Manager
Joined: 20 Mar 2008
Posts: 433

### Show Tags

13 Aug 2009, 21:44
1
3
2/100 * I + (100 + 1/100 * I) / 2
= I/50 + 50 + I/200
= 50 + 5I/200
= 50 + I/40

So, C it is.

The last part is tricky, as we need to add the 2% of one's annual income to the Average of 100 units or R's currency & 1% of one's annual income.
Intern
Joined: 11 Aug 2009
Posts: 8

### Show Tags

14 Aug 2009, 11:15
joyseychow wrote:
Pls. explain. Thks.

C from me as well....
Manager
Joined: 17 Jan 2010
Posts: 208
Schools: UCLA (Anderson) - Class of 2013
GMAT 3: 740 Q49 V41
Re: PS from Gmat Prep  [#permalink]

### Show Tags

23 Mar 2010, 16:34
Can you post the choices as well?
_________________
Manager
Joined: 20 Nov 2009
Posts: 144

### Show Tags

28 Apr 2010, 06:06
I didn't understand this. Could someone please explain?
_________________

But there’s something in me that just keeps going on. I think it has something to do with tomorrow, that there is always one, and that everything can change when it comes.
http://aimingformba.blogspot.com

Director
Joined: 03 Sep 2006
Posts: 833

### Show Tags

10 May 2010, 09:36
Attachments

PS2.PNG [ 19.61 KiB | Viewed 9538 times ]

Intern
Joined: 18 May 2011
Posts: 14
Re: Hard GMAT PREP PS problem  [#permalink]

### Show Tags

03 Jun 2011, 00:05
1
GMAT TIGER wrote:
lionheart187 wrote:
Before being simplified, the instructions for computing income tax in Country R were to add 2 percent of ones'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 + I/40
C) 50 + I/40
D) 100 + I/50
E) 100 + 3I/100

Whats the diff between B and C?

I = one's annual income
2 percent of ones's annual income = 0.02 of I
the average (arithmetic mean) of 100 units of Country R's currency and 1 percent of one's annual income = (100 + 0.01 of I)/2

the simplified formula = 2 percent of ones's annual income + the average (arithmetic mean) of 100 units of Country R's currency and 1 percent of one's annual income

the simplified formula = [0.02 of I + (100 + 0.01 of I)/2]
the simplified formula = 50 + I/40

Hi,
Im keep on getting 10,000 + I/40. Could you please explain how you reached "50" + I/40.
I know its very simple but im missing something.

Thanks
Current Student
Joined: 26 May 2005
Posts: 523
Re: Hard GMAT PREP PS problem  [#permalink]

### Show Tags

03 Jun 2011, 00:14
2
Carol680 wrote:
GMAT TIGER wrote:
lionheart187 wrote:
Before being simplified, the instructions for computing income tax in Country R were to add 2 percent of ones'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 + I/40
C) 50 + I/40
D) 100 + I/50
E) 100 + 3I/100

Whats the diff between B and C?

I = one's annual income
2 percent of ones's annual income = 0.02 of I
the average (arithmetic mean) of 100 units of Country R's currency and 1 percent of one's annual income = (100 + 0.01 of I)/2

the simplified formula = 2 percent of ones's annual income + the average (arithmetic mean) of 100 units of Country R's currency and 1 percent of one's annual income

the simplified formula = [0.02 of I + (100 + 0.01 of I)/2]
the simplified formula = 50 + I/40

Hi,
Im keep on getting 10,000 + I/40. Could you please explain how you reached "50" + I/40.
I know its very simple but im missing something.

Thanks

Here it is
2% of I + ( 100 +1% of I)/2
2/100*I + 100/2 + (1/100*I)/2
2I/100+50+I/200
(4I+I)/200 + 50
I/40 + 50

hope this helps
Manager
Joined: 11 Feb 2011
Posts: 120
Re: Hard GMAT PREP PS problem  [#permalink]

### Show Tags

03 Jun 2011, 00:44
"the average (arithmetic mean) of 100 units of Country R's currency and 1 percent of one's annual income = (100 + 0.01 of I)/2"
@GMAT TIGER:How can we divide it by 2. I mean when there are 100 notes of country R's currency + some percent of one mans income ,how can the total be two?Elaborate the concept pls.
_________________

target:-810 out of 800!

Manager
Joined: 16 Mar 2011
Posts: 152
Re: Hard GMAT PREP PS problem  [#permalink]

### Show Tags

03 Jun 2011, 00:54
i eventually also got i/40 + 50 as some have posted here BUT I initially also thought that it was (100units + 1%I/101).. I thought 100 units can not just be expressed in the denominator as 1..
Retired Moderator
Joined: 20 Dec 2010
Posts: 1868
Re: Hard GMAT PREP PS problem  [#permalink]

### Show Tags

03 Jun 2011, 04:11
3
lionheart187 wrote:
Before being simplified, the instructions for computing income tax in Country R were to add 2 percent of ones'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/300
C) 50 + I/40
D) 100 + I/50
E) 100 + 3I/100

2% of Annual Income
TO
Average OF[100 units of currency AND 1% of annual Income]

Annual Income=x (using x for clarity because I looks like 1)

2% of Annual Income = 2x/100
1% of Annual Income = 1x/100= x/100
Average of [100 units of currency AND 1% of annual Income] = (100+(x/100))/2=((100)^2+x)/200

$$Tax=\frac{2x}{100}+\frac{100^2+x}{200}$$

$$Tax=\frac{4x+100^2+x}{200}$$

$$Tax=\frac{5x+100^2}{200}$$

$$Tax=\frac{5x}{200}+\frac{100^2}{200}$$

$$Tax=\frac{x}{40}+\frac{100*100}{200}$$

$$Tax=50+\frac{x}{40}$$

Ans: "C"
_________________
Intern
Joined: 18 May 2011
Posts: 14
Re: Hard GMAT PREP PS problem  [#permalink]

### Show Tags

07 Jun 2011, 08:13
thank you sudhir18n +1.
I wasnt concentrating enough
Manager
Status: GMAT BATTLE - WIN OR DIE
Joined: 02 May 2011
Posts: 126
Concentration: General Management, Entrepreneurship
GMAT Date: 12-22-2011
GPA: 3.81
WE: General Management (Hospitality and Tourism)
Re: Hard GMAT PREP PS problem  [#permalink]

### Show Tags

22 Jul 2011, 13:59
thanks for explanation of this problem
Non-Human User
Joined: 09 Sep 2013
Posts: 8176
Re: Before being simplified, the instructions for computing  [#permalink]

### Show Tags

14 Jul 2018, 19:23
Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
_________________
Re: Before being simplified, the instructions for computing &nbs [#permalink] 14 Jul 2018, 19:23

Go to page   Previous    1   2   [ 33 posts ]

Display posts from previous: Sort by

# Before being simplified, the instructions for computing

## Events & Promotions

 Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.