Question

Rachel earns $28,000 income a year after taxes. Using the 50/30/20 budget rule, what is the maximum amount of her
Income she should spend on her wants?
$7000
$14,000
$8400
$5600

Answer 1

The 50/30/20 rule is 50% Necessity, 30% wants and 20% savings.

Multiply her income by 30%

28000 x 0.30 = 8,400

Answer: $8400