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?

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Business

Jazlyn Soto

30 May, 13:55

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?

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Zachariah Hoffman · Answer 1

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

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.