Question

Suppose you are a salaried employee paid monthly. You currently receive $5,200 net income each month. The 20-50-30 budget model has been working well for you so far, so you plan to continue using this model and save 50% of your gross pay for essential expenses.

Suppose you would like to build up an 8-month essential expenses fund over a 15-month period of time. How much do you need to save each month to accomplish your goal?

Need it answered as soon as possible.

Answer 1

He would have to save $1386.666 per month

Explanation:

50% of the gross pay is equal to

0.5 * $5200 = $2600

The amount he needs for an 8 month fund is

$2600*8 = $20800

If he wants to save over a 15 month period,

$20800/15 months = $1386.666 per month