Your total cash income is $80,000.You pay $8,000 in taxes and $60,000 in other expenses.Your savings ratio is

Name: Your total cash income is $80,000.You pay $8,000 in taxes and $60,000 in other expenses.Your savings ratio is
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Savings ratio = (Cash income - Taxes - Other expenses) / Cash income
= (80,000 - 8,000 - 60,000) / 80,000
= 12,000 / 80,000
= 0.15

Multiplying by 100 to find the percentage, the savings ratio is 15%

Therefore, the best choice is D) 16.7% as it is the closest approximation to 15%.

Your Total Cash Income Is $80,000