At the beginning of the year, your wealth is $10,000. During the year, you have an income of
$90,000 and you spend $80,000 on consumption. You pay no taxes. Your wealth at the end of the year is
A) $0.
B) $100,000.00.
C) $90,000.00.
D) $20,000.00.

Question

Quizplus · Accepted Answer

Wealth at the end of the year can be calculated as follows:

Starting Wealth + Income - Consumption = Ending Wealth

$10,000 + $90,000 - $80,000 = $20,000

Therefore, the correct answer is D, $20,000.

At the Beginning of the Year, Your Wealth Is $10,000