Pat earns $1,000 per week and spends $850 per week on living expenses, puts $50 in a savings account, and buys $100 worth of shares in a stock mutual fund. Pat's saving is ________, and Pat's saving rate is ________.
A)$50; 5.0 percent
B)$50; 5.9 percent
C)$100; 10 percent
D)$150; 15 percent

Question

Quizplus · Accepted Answer

The savings rate is the amount saved divided by income. In this case, saving is $150, which is the income not spend on current needs, and the saving rate is $150/$1,000 = 0.15, or 15 percent.

Pat Earns $1,000 Per Week and Spends $850 Per Week