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#14. Using the information from question #14, if you only want to put 50% of your discretionary monies toward the emergency fund each month, how many months will it take to fully fund it, excluding interest accrual? (Note: Round up to the next whole month.)


#15 Using the information from question #14, if you only want to put 50% of your discretionary monies toward the emergency fund each month, how many months will it take to fully fund it, excluding interest accrual? (Note: Round up to the next whole month.)

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anthougo

To save 6 months’ worth of your fixed expenses in an emergency fund will take approximately 5 months.

What is an emergency fund?

An emergency fund is a safety net used specifically to cover basic living expenses for at least 6 months in case future mishaps or unexpected expenses arise.

Financial experts generally recommend six months of basic living (fixed) expenses to put away in an emergency fund.

Data and Calculations:

The amount to save in the emergency fund = $3,753.79 ($2,085.44 x 30% x 6)

50% of discretionary monies = $729.90 ($2,085.44 x 1 - 30%) x 50%

Months to save $3,753.79 saving $729.90 = 5 months ($3,753.79/$729.90)

Question Completion:

Your realized income is $2,085.44, and your fixed expenses are 30%. You want to save 6 months’ worth in an emergency fund.

How many months will it take to fully fund it, excluding interest accrual?

Thus, o save 6 months’ worth of your fixed expenses in an emergency fund will take approximately 5 months.

Learn more about discretionary expenses and emergency funds at https://brainly.com/question/422550

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