Suppose you are a salaried employee paid monthly. You currently receive $5,200 net income each month. The 20-50-30 budget model has been working well for you so far, so you plan to continue using this model and save 50% of your gross pay for essential expenses.

Suppose you would like to build up an 8-month essential expenses fund over a 15-month period of time. How much do you need to save each month to accomplish your goal?

Need it answered as soon as possible.

Question

Mathematics

London Webster

20 February, 02:11

Suppose you are a salaried employee paid monthly. You currently receive $5,200 net income each month. The 20-50-30 budget model has been working well for you so far, so you plan to continue using this model and save 50% of your gross pay for essential expenses.

Suppose you would like to build up an 8-month essential expenses fund over a 15-month period of time. How much do you need to save each month to accomplish your goal?

Need it answered as soon as possible.

+1

Answers (1)

Know the Answer?

Deja · Answer 1

He would have to save $1386.666 per month

Step-by-step explanation:

50% of the gross pay is equal to

0.5 * $5200 = $2600

The amount he needs for an 8 month fund is

$2600*8 = $20800

If he wants to save over a 15 month period,

$20800/15 months = $1386.666 per month