Question

Tomas receives monthly wages of $1,500 and government transfers of $200 per month, and pays income and sales tax of $170. Tomas's disposable income is _____ a month.

Answer 1

Answer: $ 1530.

Justification:

Disposable income is the amount of money available for spending and saving after taxes have been paid.

So, disposable income = monthly wages + goverment transfers - income and sales taxes

=> disposable income = $1500 + $200 - $ 170 = $1530