Question

Market researchers often report discretionary income. discretionary income is your disposable income minus your fixed expenses. your disposable income is $1,200. after you pay for rent, utilities, groceries, and a car payment, you have $200. what percentage of your disposable income is discretionary

Answer 1

Discretionary income = $200
Disposable income = $1200
To get the percentage of the discretionary income, get the ratio of the discretionary income with respect to the disposable income and multiply by 100.
% discretionary income = discretionary income/ disposable income x 100
%discretionary income = $200/1200 x 100
% discretionary income = 16.67%