What is your monthly disposable income?

Question

 Market researchers often report disposable income. This is your income after tax deductions. Your gross income is $3,000 per month. Your federal tax is 10%, state tax is 5%, city tax is 2%, and you pay 7% to social security. What is your monthly disposable income?

Answer 1

monthly disposable income 

 

= ( 0.10 * 3000) + ( 0.05 * 3000) + ( 0.02 * 3000) + (0.07 * 3000)

 

 

= 720

 

All you need to do is find the percentage of the income that has been set aside for each type of tax.