Question

Damian wants to save $7200 to buy a car within the next 2 years. How could a monthly budget be created to help Damian save enough money to buy a car in a timely manner with minimal effect on his other essential expenses?

Answer 1

He should create a monthly budget putting any extra money aside in a savings account after all other needs are met.

Answer 2

Answer: His monthly budget to buy the car is equal to $300.

Explanation:

Here, He has to save $7200 to buy a car within the next 2 years.

Therefore money saved in 1 year =
`(7200 )/(2) = $3600`

⇒ money saved in per month in a year =
`(3600)/(12) = $300`

That is, he has to save $300 per month for 2 years if he wants to buy a car costs $7200.