Question

Your gross pay is $1,878.96, net income is $1,196.34, and fixed expenses are $1,338.54. What is your discretionary income?

You have a deficit of $540.42.

You have a deficit of $142.20.

$142.20

Answer 1

After subtracting fixed expenses from the net income, the calculation shows a deficit of $142.20, indicating that expenses exceed the net income.

Step-by-step explanation:

To calculate your discretionary income, we need to subtract your fixed expenses from your net income. In the scenario provided, your gross pay is $1,878.96, your net income is $1,196.34, and your fixed expenses amount to $1,338.54.

The calculation for discretionary income would be:

Net Income - Fixed Expenses = Discretionary Income
$1,196.34 - $1,338.54 = -$142.20

This implies that you have a deficit of $142.20, meaning your expenses exceed your net income by that amount.

Answer 2

Let's See

• Discretionary income=Gross income-Fixed expenses
• 1878.96-1338.54
• 540.42$

Deficit of 540.42$