Ask Question
15 March, 21:02

g You earn $40,221 at your job and must pay 11% of your income in taxes. You then decide to save 8% of your disposable income. How much do you have left for consumption spending? Round to two decimal places.

+1
Answers (2)
  1. 15 March, 21:26
    0
    The amount left for consumption spending is $32,932.95

    Explanation:

    The amount left for consumption spending is known as disposable income or take-home pay less savings. The disposable income is the income left after taxes have been paid to relevant tax authority. The computation of amount left for consumption is done below:

    Gross income $40,221

    Tax at 11% (11%*$40,221) ($4424.31)

    Disposable income $35,796.69

    Savings at 8% of disposable income

    ($35,796.69*8%) ($2,863.74)

    Amount left for consumption spending $32,932.95

    This is not mean that I have to spend this $32,932.95 during the month, there might some investments I want to my money on to yield more returns.
  2. 15 March, 21:30
    0
    The amount of money left for consumption is $32,933.24

    Explanation:

    Total gross Income

    $40221 * (1-tc)

    40221 * (1-.011)

    =35796.69

    Disposable income is the amount left for saving and spending after income taxes have been paid which in this case would be $35,797

    so 8% of this amount is saved meaning 92% will be left for spending

    Savings 37,797*0.08 = $2,863.76

    Left for consumption = $32,933.24
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “g You earn $40,221 at your job and must pay 11% of your income in taxes. You then decide to save 8% of your disposable income. How much do ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers