A young working couple earned $50,000 last year. Of that, they paid $16,000 in taxes and $15,000 in rent, food, insurance and other necessities. Their discretionary income for the year was:
A) $35,000.
B) $50,000.
C) $19,000.
D) $34,000.
E) $15,000.

Question

Quizplus · Accepted Answer

Discretionary income is the money that is left over after paying for all necessary expenses such as taxes, rent, food, and insurance. Therefore, the discretionary income for the couple would be $50,000 - $16,000 - $15,000 = $19,000.

A Young Working Couple Earned $50,000 Last Year