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how much money must abdol shift from his other accounts to his emergency fund to have four times his monthly bills in the account by the end of the year?

1 Answer

2 votes

Final answer:

Abdol must shift $12,000 to his emergency fund to have four times his monthly bills of $3,000 in the account by the end of the year.

Step-by-step explanation:

To determine how much money Abdol should shift to his emergency fund to have four times his monthly bills, we first need to calculate his total monthly bills. Since rent is $2,000 per month and groceries and other bills come to $1,000 per month, his total monthly bills are $3,000. The goal is for the emergency fund to have four times this monthly expense, which is $12,000 (4 times $3,000). If Abdol wants this amount by the end of the year, and assuming he currently has no money in the emergency fund, he would need to shift $12,000 into the emergency fund from his other accounts.

It is also essential to consider building a savings account with at least three to nine months' worth of monthly income for a financial cushion in case of unforeseen circumstances like unemployment or other sudden expenses.

answered
User Markthegrea
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