jim just found a job with a take - home pay of $1,950 per month. he must pay $1,200 for rent and $200 for…

jim just found a job with a take - home pay of $1,950 per month. he must pay $1,200 for rent and $200 for groceries each month. he also spends $200 per month on transportation. if he budgets $50 each month for clothing, $100 for restaurants and $50 for everything else, how long will it take him to put together emergency savings of $1,800?\na. 10 months\nb. 5 months\nc. 15 months\nd. 12 months

jim just found a job with a take - home pay of $1,950 per month. he must pay $1,200 for rent and $200 for groceries each month. he also spends $200 per month on transportation. if he budgets $50 each month for clothing, $100 for restaurants and $50 for everything else, how long will it take him to put together emergency savings of $1,800?\na. 10 months\nb. 5 months\nc. 15 months\nd. 12 months

Answer

Explanation:

Step1: Calculate monthly expenses

$1200 + 200+200 + 50+100 + 50=1800$

Step2: Calculate monthly savings

$1950−1800 = 150$

Step3: Calculate number of months for emergency savings

$\frac{1800}{150}=12$

Answer:

D. 12 months