BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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$160
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$320
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$400
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Detailed explanation-1: -Find your gross salary in your most recent pay stub and multiply it by 0.2. If you earn $3, 000 per pay period, for example, a 20 percent savings from every paycheck totals $600.
Detailed explanation-2: -If You Are Paid Bi-Weekly: Multiply your take-home pay for one paycheck by the number of paychecks in a year: 26. Then divide this number by 12 to get your monthly income. If You Are Paid Weekly: Take your weekly pay and multiply it by the number of weeks in a year: 52.
Detailed explanation-3: -Savings Rate (SR) is defined as the ratio of savings divided by your income. Your savings over any period is your income-expenses. Thus your SR = (Income after tax-spending) / (Income after tax). To convert this SR to a percentage, multiply by 100.
Detailed explanation-4: -Figure 20% of your monthly income and multiply by 12. That’s how much you can reasonably save over the 12 months in a year. Look at that! You just made your first savings plan!