Alberto Romez earned $100,000 last year as a Mercedes sales rep. He paid $10,000 in taxes, and another $25,000 on food, housing and other necessities. Alberto's disposable income was ________________ and his discretionary income was _________________.

Question

Quizplus · Accepted Answer

Disposable income is the income left after taxes, which is $100,000 - $10,000 = $90,000. Discretionary income is the income left after taxes and necessities, which is $90,000 - $25,000 = $65,000.

Alberto Romez Earned $100,000 Last Year as a Mercedes Sales