Question
Joelle wants to have an emergency fund to cover 6 months of her expenses. Her monthly gross pay is $4,000 and her monthly expenses are $2,000. If she plans to save 10% of her gross pay each month, how long will it take her to build her emergency fund?
Responses
3 months
3 months
9 months
9 months
24 months
24 months
30 months
Responses
3 months
3 months
9 months
9 months
24 months
24 months
30 months
Answers
GPT-4o mini
To determine how long it will take Joelle to build her emergency fund, we first need to calculate the total amount she needs for her emergency fund.
Joelle wants to cover 6 months of her expenses, and her monthly expenses are $2,000:
\[
\text{Emergency Fund} = 6 \times \text{Monthly Expenses} = 6 \times 2,000 = \$12,000
\]
Next, we need to find out how much she will save each month. She plans to save 10% of her gross pay:
\[
\text{Monthly Saving} = 0.10 \times \text{Gross Pay} = 0.10 \times 4,000 = \$400
\]
Now, we can calculate how many months it will take her to save $12,000 at a rate of $400 per month:
\[
\text{Number of Months} = \frac{\text{Emergency Fund}}{\text{Monthly Saving}} = \frac{12,000}{400} = 30 \text{ months}
\]
Therefore, it will take Joelle **30 months** to build her emergency fund.
Joelle wants to cover 6 months of her expenses, and her monthly expenses are $2,000:
\[
\text{Emergency Fund} = 6 \times \text{Monthly Expenses} = 6 \times 2,000 = \$12,000
\]
Next, we need to find out how much she will save each month. She plans to save 10% of her gross pay:
\[
\text{Monthly Saving} = 0.10 \times \text{Gross Pay} = 0.10 \times 4,000 = \$400
\]
Now, we can calculate how many months it will take her to save $12,000 at a rate of $400 per month:
\[
\text{Number of Months} = \frac{\text{Emergency Fund}}{\text{Monthly Saving}} = \frac{12,000}{400} = 30 \text{ months}
\]
Therefore, it will take Joelle **30 months** to build her emergency fund.