Question

Your monthly pay is 3,255 dollars, and you put away 10% of that into Savings. Your rent is 850 dollars a month.

Using the dollar amount for savings, calculate how many months it will take to have four months of rent saved.

Answer 1

A student with a monthly income of $3,255 saving 10% would save $325.50 per month. To save for four months of rent at $850 per month, they need $3,400.

Step-by-step explanation:

To calculate how long it will take for a student to save up enough to cover four months of rent with a monthly pay of $3,255, where the student saves 10% of their income, we start by determining the monthly savings amount. We arrive at this by calculating 10% of $3,255, which equals $325.50. We then multiply the monthly rent, which is $850, by four to determine the total amount needed to cover four months of rent, resulting in $3,400.

Next, we divide the total needed for four months of rent by the monthly savings to find the number of months required to save that amount:

1. Savings per month: 10% of $3,255 = 0.10 × $3,255 = $325.50.
2. Total needed for rent: 4 months of rent = 4 × $850 = $3,400.
3. Number of months to save: $3,400 / $325.50 ≈ 10.45 months.

So, it would take approximately 10.45 months for the student to save enough to cover four months of rent. To be precise, since you can't save for a fraction of a month, the student would need to save for 11 months to have the amount required.