Question

Your realized income is $2,085.44, and your fixed expenses are 30%. You want to save 6 months worth in an emergency fund. How much do you need to save?

I got $625.63 per month. Do I multiply this by the 6 months to get the final answer?

Answer 1

$3753.792

Explanation:

Given : Your realized income is $2,085.44, and your fixed expenses are 30%. You want to save 6 months worth in an emergency fund.

To Find: How much do you need to save?

Solution:

Income = $2,085.44

Expenses = 30% of income

=
`(30)/(100) * 2085.44`

=
`625.632`

So, your expenses per month is 625.632

So, your expenses for 6 months =
`625.632 * 6`

=
`3753.792`

Since we are given that ou want to save 6 months worth in an emergency fund.

So, you saved 6 months in an emergency fund = $3753.792

Thus you was right . You need multiply $625.63 with 6 .

Hence the final answer is $3753.792

Answer 2

$3753.79

Explanation:

To find your emergency fund, you need to get your fixed expenses as the base.

Fixed Expenses = $2085.44 x 0.30

Fixed Expenses = $625.63

Now you need to take your Fixed Expenses and multiply that to the number of months you want to save for.

$625.63 x 6 = $3753.79

So you will need to save $3753.79 for 6 months worth of an emergency fund.