Nori earns an income of $30,000, pays $10,000 in taxes and receives $5,000 in transfer payments. He saved $8,000 at Scotiabank. What is his disposable income?
A) $22,000
B) $25,000
C) $20,000
D) $17,000
E) $15,000

Question

Quizplus · Accepted Answer

Disposable income is calculated by subtracting taxes from the sum of income and transfer payments. Therefore, Nori's disposable income is ($30,000 + $5,000 - $10,000) = $25,000.

Nori Earns an Income of $30,000, Pays $10,000 in Taxes