Question

You're working on building your emergency fund. Your total living expenses are $3,900 per month, and you're hoping to save enough for three months' worth of expenses. You are currently saving $900 each month. How long will it take you to fully fund your emergency fund?

Answer 1

It will take approximately 4.33 months to fully fund your emergency fund.

Step-by-step explanation:

To calculate how long it will take you to fully fund your emergency fund, you need to divide your total living expenses by your monthly savings. In this case, your total living expenses are $3,900 per month and you're saving $900 each month. So, $3,900 ÷ $900 equals 4.33. This means it will take you approximately 4.33 months to fully fund your emergency fund.

Answer 2

It will take approximately 13 months to save an emergency fund sufficient to cover three months' worth of living expenses at $3,900 per month, with a monthly saving of $900.

Step-by-step explanation:

To determine how long it will take to fully fund an emergency fund, we first need to calculate the total amount needed, which is the living expenses for three months. With a monthly expense of $3,900, the total for three months would be $3,900 × 3 = $11,700.

Since the student is saving $900 each month, we can divide the total needed by the monthly savings to find the number of months required: $11,700 / $900 ≈ 13 months. Therefore, it will take approximately 13 months to save enough for a three-month emergency fund.