Your goal is to have an emergency fund equal to 3 months living expenses. Your living expenses are $700 a month. Your take-home pay per month is $1,100, and you plan to put 10% toward your emergency fund each month. How long will it take you to reach your goal?

Question

Mathematics

Jocelynn Pratt

13 July, 13:23

Your goal is to have an emergency fund equal to 3 months living expenses. Your living expenses are $700 a month. Your take-home pay per month is $1,100, and you plan to put 10% toward your emergency fund each month. How long will it take you to reach your goal?

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Answers (1)

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Estes · Answer 1

First you need to know what 10% of 1100 is, so you take 1100 and multiply it by the decimal form of the percent which is. 11 to get $121. Now we know that every month we will put $121 into the fund, now just divide the total amount you need in the fun, $700, by your $121 monthly input to get the number of months to save that amount. You should get around 5.79 months, so it'll be 6 months before he has 3 months of living expenses.