Your realized income is $2,415.64/month, and 54% are discretionary monies. If you want to save 3 months of fixed expenses for an emergency fund, how much must you save each month to fund it in 8 months

Respuesta :

The correct answer is $416.70

Answer:

$ 416.70 ( approx )

Step-by-step explanation:

Given,

The monthly income = $ 2,415.64,

Discretionary monies (Money left after expenses) = 54 % of the monthly income

Fixed expenses for a month = (100-54)% of total monthly income

= 46 % of total monthly income

= 0.46 ×  2,415.64

= $ 1,111.1944

Thus, the fixed expenses of 3 months = 3 × fixed expenses for a month

= 3 × 1,110.5544 = $ 3331.6632

Since, this money is saved in 8 months,

Hence, the amount of money saved per month = 1/8 of  $ 3331.6632

= $ 416.6979 ≈ $ 416.70