Answer:
correct option is c. 50 + [tex]\frac{I}{40}[/tex]
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 = [tex]\frac{100 + 0.01 *I}{2}[/tex] .......................3
so tax is sum of equation 1 and 3
tax = 0.02 I + [tex]\frac{100 + 0.01 *I}{2}[/tex]
tax = 50 + [tex]\frac{I}{40}[/tex]
so correct option is c. 50 + [tex]\frac{I}{40}[/tex]