Question

You have a realized income of $3,264.71/month. Your housing and fixed expenses are 36% of your monthly realized income. You want to save 4 months of an emergency fund within 9 months. How much must you save each month?

Answer 1

You must save $522.36 each month

Answer 2

$522.36

Step-by-step explanation:

First we need to find out how much money 4 months of an emergency fund is total.

36% of our monthly income is $1,175.30.

Our total emergency fund will be:

$1,175.30 x 4 months = $4,701.2

Now that we have a value for our total emergency fund, we then divide the total amount by 9.

$4,701.2/9 = $522.36

We would need to save $522.36 each month for 9 months.