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 $1,500?\na. 12 months\nb. 15 months\nc. 10 months\nd. 5 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 $1,500?\na. 12 months\nb. 15 months\nc. 10 months\nd. 5 months

Answer

Explanation:

Step1: Calculate monthly savings

Monthly income is $1950$. Total monthly expenses are $1200 + 200+200 + 50+100 + 50=1800$. Monthly savings is $1950 - 1800=150$.

Step2: Calculate number of months for emergency - savings

To save $1500$ with a monthly savings of $150$, we use the formula $\text{Number of months}=\frac{\text{Total savings goal}}{\text{Monthly savings}}$. So, $\frac{1500}{150}=10$.

Answer:

C. 10 months