Question
Marge and Liam want to live by the 50/30/20 rule. They bring home $40,000 annually. How much should they be saving every year according to this rule?
Responses
$20,000
$20,000
$8,000
$8,000
$660
$660
$12,000
Responses
$20,000
$20,000
$8,000
$8,000
$660
$660
$12,000
Answers
GPT-4o mini
The 50/30/20 rule allocates 50% of income to needs, 30% to wants, and 20% to savings or debt repayment.
For Marge and Liam's annual income of $40,000, the calculation for savings would be:
20% of $40,000 = 0.20 × 40,000 = $8,000.
So, according to the 50/30/20 rule, Marge and Liam should be saving **$8,000** every year.
For Marge and Liam's annual income of $40,000, the calculation for savings would be:
20% of $40,000 = 0.20 × 40,000 = $8,000.
So, according to the 50/30/20 rule, Marge and Liam should be saving **$8,000** every year.