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how much money must abdol shift from his other accounts to his emergency fund to have four times his monthly bills in the account by the end of the year?

User Webbexpert
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Final answer:

Abdol must shift $12,000 to his emergency fund to have four times his monthly bills of $3,000 in the account by the end of the year.

Step-by-step explanation:

To determine how much money Abdol should shift to his emergency fund to have four times his monthly bills, we first need to calculate his total monthly bills. Since rent is $2,000 per month and groceries and other bills come to $1,000 per month, his total monthly bills are $3,000. The goal is for the emergency fund to have four times this monthly expense, which is $12,000 (4 times $3,000). If Abdol wants this amount by the end of the year, and assuming he currently has no money in the emergency fund, he would need to shift $12,000 into the emergency fund from his other accounts.

It is also essential to consider building a savings account with at least three to nine months' worth of monthly income for a financial cushion in case of unforeseen circumstances like unemployment or other sudden expenses.

User Markthegrea
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