Ahmed has gross income of $28 000,disposable income of $25 000,discretionary income of $2000 and saved $1000 during the period.His savings rate is

Question

Quizplus · Accepted Answer

To calculate the savings rate, we need to divide the amount saved by the disposable income and multiply by 100.

Savings rate = (Amount saved / Disposable income) x 100

Savings rate = (1000 / 25000) x 100

Savings rate = 4%

Therefore, the correct answer is B.

Ahmed Has Gross Income of $28 000,disposable Income of $25