Question

Joelle wants to have an emergency fund to cover 6 months of her expenses. Her monthly gross pay is $5,000 and her monthly expenses are $3,000. If she plans to save 10% of her gross pay each month, how long will it take her to build her emergency fund?

Answer 1

Answer: 36 months or 3 years.

Step-by-step explanation:

Her Monthly expenses are $3,000.

Her 6 month expenses will be = 3,000 * 6 = $18,000

She saves 10% of her $5,000 income each month = 10% * 5,000 = $500

Saving $500 to get to $18,000;

= 18,000/500

= 36 months

= 3 years