Question

Your housing and fixed expenses are $702.38/month.
You want to have a 4 month emergency fund and save it over
a 9 month period of time. How much do you need to save
per month? round to the nearest penny

Answer 1

To calculate how much you need to save per month for a 4-month emergency fund, follow these steps:

1. **Calculate the total amount needed for the emergency fund:**
\[
\text{Total emergency fund} = \text{Monthly expenses} \times \text{Number of months}
\]
\[
\text{Total emergency fund} = 702.38 \, \text{USD} \times 4 = 2809.52 \, \text{USD}
\]

2. **Divide the total amount by the number of months over which you want to save:**
\[
\text{Monthly saving} = \frac{\text{Total emergency fund}}{\text{Number of months to save}}
\]
\[
\text{Monthly saving} = \frac{2809.52 \, \text{USD}}{9} \approx 311.06 \, \text{USD}
\]

Therefore, you need to save approximately **$311.06** per month.