Answered

Looking for answers? Westonci.ca is your go-to Q&A platform, offering quick, trustworthy responses from a community of experts. Find reliable answers to your questions from a wide community of knowledgeable experts on our user-friendly Q&A platform. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our platform.

3.

Your gross income is $4,520.00/month. Your deductions are FICA (7.65%), federal tax withholding (11.75%), and state tax withholding (8.5%). Your fixed expenses are 30% of your realized income. You saved 5 months' worth in an emergency fund, placing 75% in a 60-day CD at a 5.25% APR and the rest in a regular savings account at a 3.8% APR. What is the total amount of your emergency fund?

$4,888.40

$6,516.91

$4,520.00

$6,107.33

Sagot :

sqdancefan

Answer:

  (a)  $4,888.40

Step-by-step explanation:

Your deductions total ...

  7.65% +11.75% +8.5% = 27.9%

of your gross income. That means your realized income is ...

  $4,520.00 × (1 -0.279) = $3258.92

Your monthly expenses are 30% of this amount, and your savings is 5 times your expenses. Your total savings is ...

  $3258.92 × 0.30 × 5 = $4888.38 . . . . . matches choice A

We appreciate your visit. Hopefully, the answers you found were beneficial. Don't hesitate to come back for more information. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Your questions are important to us at Westonci.ca. Visit again for expert answers and reliable information.