Chris earns $1,500 per week and spends $1,000 per week on living expenses, puts $200 in a savings account, and buys $300 worth of shares in a stock mutual fund. Chris's saving is ________, and Chris's saving rate is ________.
A)$200; 13.3 percent
B)$200; 20.0 percent
C)$300; 20.0 percent
D)$500; 33.3 percent

Question

Quizplus · Accepted Answer

Stocks and savings accounts are both considered savings. In this case, saving is $500 and the saving rate is $500/$1,500 = 0.33, or 33.3 percent.

Chris Earns $1,500 Per Week and Spends $1,000 Per Week