If the Potinsky household spends $37 comma 300 annually on all living expenses and long-term debt, calculate the amount recomm

Question

3 years ago

8

If the Potinsky household spends $37 comma 300 annually on all living expenses and long-term debt, calculate the amount recomm

ended for an emergency fund. How might household circumstances (e.g., wage earners in the household, available credit, and type and stability of employment) affect this decision?

Business

1 answer:

Finger [1] · Answer 1 · 2021-11-29T03:48:45+03:00

Answer:

$9,249 for three months, $18,498 for six months.

Explanation:

Experts recommend that an emergency fund should include 3 to 6 months of cash to provide for living expenses.

The Potinsky household spends $37,000 annually, therefore, it spends $3,083 monthly ($37,000 / 12).

For a three-month emergency fund = $3,083 x 3

= $9,249

For a six-month emergency fund = $3,083 x 6

= $18,498

If the Potinsky household spends ​$37 comma 300 annually on all living expenses and​ long-term debt, calculate the amount recomm

If the Potinsky household spends $37 comma 300 annually on all living expenses and long-term debt, calculate the amount recomm