question 2 out of 4\nyour total cash income is $40,000. you pay $5,000 in taxes and $30,000 in other…

question 2 out of 4\nyour total cash income is $40,000. you pay $5,000 in taxes and $30,000 in other expenses. your savings ratio is (keep 2 decimal places)\ntype your answer here\nsubmit\n1 / 4 questions correct

question 2 out of 4\nyour total cash income is $40,000. you pay $5,000 in taxes and $30,000 in other expenses. your savings ratio is (keep 2 decimal places)\ntype your answer here\nsubmit\n1 / 4 questions correct

Answer

Explanation:

Step1: Calculate savings amount

Savings = Income - Taxes - Other expenses. So, Savings = $40000 - 5000 - 30000=5000$.

Step2: Calculate savings ratio

Savings ratio = $\frac{\text{Savings}}{\text{Income}}$. Substitute the values: Savings ratio = $\frac{5000}{40000}= 0.125$.

Step3: Round to 2 decimal places

Rounding 0.125 to 2 decimal places gives 0.13.

Answer:

0.13