AMIT equation: which expression defines AMIT in terms of AMTI?

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Multiple Choice

AMIT equation: which expression defines AMIT in terms of AMTI?

Explanation:
At the heart of this question is a simple proportional relationship: AMIT is determined by applying a 20% rate to the AMTI. In other words, AMIT equals 0.20 times AMTI. That’s why the correct expression is AMIT = AMTI × 20%. For a quick check, if AMTI is 100, AMIT would be 20. The other forms would not match this fixed 20% relationship, since they imply subtracting, adding, or using 80% of AMTI rather than applying the 20% rate.

At the heart of this question is a simple proportional relationship: AMIT is determined by applying a 20% rate to the AMTI. In other words, AMIT equals 0.20 times AMTI. That’s why the correct expression is AMIT = AMTI × 20%. For a quick check, if AMTI is 100, AMIT would be 20. The other forms would not match this fixed 20% relationship, since they imply subtracting, adding, or using 80% of AMTI rather than applying the 20% rate.

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