Nancy has a gross income of $47 000,disposable income of $40000,a net worth of $80000 and saves $8000 a year.Her savings rate is

Question

Quizplus · Accepted Answer

Nancy's savings rate can be found by dividing her savings by her disposable income:

Savings rate = (Savings ÷ Disposable income) × 100

Savings rate = ($8000 ÷ $40000) × 100

Savings rate = 0.2 × 100

Savings rate = 20%

Therefore, the correct answer is D) 20 percent.

Nancy Has a Gross Income of $47 000,disposable Income of $40000,a