Question

MikeMike takes a summer job cutting lawnscutting lawns. During the​ summer, he earns an​ after-tax income of ​$3 comma 0003,000 and he spends ​$2 comma 0002,000 on goods and services. What was Mike'sMike's saving during the summer and the​ change, if​ any, in his​ wealth?

Answer 1

Mike's saving and the​ change during the summer is $1,000 only.

Step-by-step explanation:

After Tax Income for summar = $3,000

His Spending on goods and services = $2,000

Mike's saving during the summer = After Tax Income - Spending on Goods and Services

Mike's saving during the summer = $3,000 - $2,000 = $1,000

Mike's saving and the​ change during the summer is $1,000 only because ultimately saved amount will be added to his wealth. His wealth will be increased by the same amount.