Chapter 6, Problem 7AA

To determine

To choose: The term that best completes the given sentence.

Answer to Problem 7AA

The best term for the given statement is “portion”.

Explanation of Solution

Traditionally, a paycheck is a paper document provided by an employer to pay a worker for services rendered.

A person uses the income for two purposes. Either for consumption or for saving. Savings done in the present can be used for the consumption purpose in the future. Also, the value of saved money rises in the future if the rate of interest rises more than the inflation rate.

It is always good to save a porting of every paycheck because it helps in future consumption or time when a person is unable to earn because of some uncertainty.

Thus, the suitable term for the given statement is “e- portion”.