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Suppose that Sarita has a gross annual income of $43,000. Her annual deductions for taxes, 401(k) retirement plan contributions, and health insurance amount to $9,400. This leaves Sarita with an annual disposable income of $33,600. Dividing Sarita annual disposable income by 12, you can determine that Sarita has a monthly disposable income of $__________ .

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Answer:

Monthly disposal income = $2,800

Explanation:

Disposal income is the amount left for spending after all statutory deductions and taxes have been subtracted from an employees' income.

Annual Disposal income = Annual gross Income - statutory deductions and taxes

Monthly disposal income = Annual disposal/12

                           = (43,000-9,400)/12= $2,800

Monthly disposal income = $2,800

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