Gaggan is saving for a trip in the upcoming March break. He has 6 months to save for the vacation that will cost him $2,500. How much must he save each pay period if he is paid bi-weekly and monthly? Given that, Gaggan has 6 months to save for the vacation that will cost him $2,500.
a. Bi-weekly: To find the amount he must save each pay period if he is paid bi-weekly, we need to follow the steps below: To find how many pay periods he has, we need to multiply the number of weeks in 6 months by 2 (because he gets paid bi-weekly).6 months = 6 × 4 = 24 weeks. Number of pay periods = 24 ÷ 2 = 12 pay periods. Next, we divide the total cost of the vacation by the number of pay periods to find how much Gaggan needs to save each pay period.$2,500 ÷ 12 = $208.33Therefore, Gaggan must save $208.33 each pay period if he is paid bi-weekly.
b. Monthly: To find the amount he must save each pay period if he is paid monthly, we need to follow the steps below: To find how many pay periods he has, we need to multiply the number of months by 1.6 months = 6 × 1 = 6 pay periods. Next, we divide the total cost of the vacation by the number of pay periods to find how much Gaggan needs to save each pay period.$2,500 ÷ 6 = $416.67Therefore, Gaggan must save $416.67 each pay period if he is paid monthly.
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