Question

Please help (show work)

From january to february of the second year, a 0.2% change in disposable income was reported. If the January amount was 12.43 million dollars, what would be the february amount be? Round your answer to two decimal places.

Answer 1

Given January income = 12.43 million dollars = $12430000

Disposable income means income after taxes. So in February there is extra deduction of 0.2% for taxes.

If we convert that percentage to decimal =
`(0.2)/(100) = 0.002`

Reduced amount = 12430000*0.002 = $24860

Hence February income = 12430000 - 24860 = $12405140= 12.41 million dollars