4. if your income is $3,000, you pay 20% of your income in taxes and spend 60% of your income on necessary…
4. if your income is $3,000, you pay 20% of your income in taxes and spend 60% of your income on necessary expenses, how much discretionary income will you have to put into a savings account and toward other wants?\n$1060\n$1400\n$960\n$2400
Answer
Explanation:
Step1: Calculate tax amount
Tax amount = 20% of $3000 = 0.2×3000 = 600$
Step2: Calculate necessary - expenses amount
Necessary - expenses amount = 60% of $3000 = 0.6×3000 = 1800$
Step3: Calculate discretionary income
Discretionary income = Total income - Tax amount - Necessary - expenses amount Discretionary income = 3000 - 600 - 1800 = 600$