During this year, Barbara earned $60,000 as a financial analyst, paid taxes of $5,000 and consumed $53,000. If Barbara's wealth was $4,000 at the beginning of the year, at the end of the year Barbara's wealth is

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Quizplus · Accepted Answer

Barbara's savings for the year are her earnings minus taxes and consumption, which is $60,000 - $5,000 - $53,000 = $2,000. Adding this to her initial wealth of $4,000 gives her an end-of-year wealth of $6,000.

During This Year, Barbara Earned $60,000 as a Financial Analyst