Question

You have housing and fixed expenses of $813.52/month. You want to have a 6-month emergency fund and you want to have it funded in 18 months. How much must you save per month?

A.) $301.25


B.) $271.17


C.) $266.04


D.) $265.23

Answer 1

The answer will be

B $271.17

Answer 2

$271.17

Explanation:

Given : You have housing and fixed expenses of $813.52/month.

You want to have a 6-month emergency fund

To Find: you want to have it funded in 18 months. How much must you save per month?

Solution:

You have housing and fixed expenses of $813.52/month.

So, 6 months emergency funds =
`813.52 * 6 =4881.12`

You want to have it funded in 18 months

So, you will save per month =
`(4881.12)/(18)`

=
`271.17`

Thus Option A is correct.

You have to save $271.17 per month.