Question

Your fixed expenses are $1235.78/month. You want to save 5 months worth for an emergency fund over time. How much must you save each month?

Answer 1

$514.908 or $514.91

Explanation:

First off we need to consider the amount of months in a year. There are a total of 12 months in a year. Now that we have the number of months in a year, we can now determine how much you need to save each month by using the Unitary Method.

First we take the number of months we want to save for and divide that to the total number of months in the year.

`(5)/(12)`

We then multiply that to the current amount of expenses we have per month.

×
`(5)/(12)`
`* 1235.78`

= $514.908 or $514.91

So in conclusion you need to save $514.91 each month.