Question

Your monthly living expenses are $1500 on an income of $1,650 per month. Your goal is to have an emergency fund of 4 times your monthly living expenses. Your emergency fund savings account has $2,400 and you put the remainder of your monthly income into the emergency fund each month. How much more money would you have to save each month to complete your emergency fund in 12 months?
a.
$300 per month
b.
$150 per month
c.
$75 per month
d.
$60 per month

Answer 1

The correct answer is B.

Answer 2

Your end goal is to have $6000 total in 12 months. since you have $2400 already you can subtract that from 6000 leaving you with $3600 over the course of 12 months. since you already put $150 in a month over the course of 12 months you would have $1800 which is only half of the goal of $3600. in order for you to put in $3600 you would have to put an additional 150 in your savings along with your regular 150 making the answer b.