Question

Identify the type of savings fund that is best suited for each situation,

Answer 1

Answer:

Step-by-step explanation:

1. Sinking Fund: Expenses like these are predictable. You know exactly when they’re going to come due, and you know at least approximately how much they’re going to cost"

So we have: down payment for a car, saving to start a business, saving for a college education

2. Rainy-Day Fund: unexpected expense you have to pay,

So we have: plumbing expenses, paying to fix a broken air conditioner, unexpected travel expense, plumbing expenses