Next month, Tokuji's monthly net income will increase to $650. If he increases his savings to $110 a month, how much can he increase his discretionary spending? $20 $10 $40 $30
Next month, Tokuji's monthly net income will increase to $650. If Tokuji increases his savings to $110 a month, he can increase his discretionary spending to $20.
Explanation:
If Tokuji chooses to save around $110 from his income every month, that would make approximately 17 percent of the total income that he earns monthly.
Thus, Tokuji can increase his spending in the same proportion but from the amount that he has saved,
Clearly so, if he wishes to increase his discretionary spending by approximately 17 percent, he would be able to spend approximately $20.
