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Jack Masters earns $40,000 a year. His monthly expenses total $2,100. What is the minimum amount of money that Mr. Masters should set aside in an emergency fund

Answer :

anthougo

Based on Mr. Jack Masters' monthly expenses of $2,100, he should set aside $6,300 or three months of his monthly expenses as the minimum for the emergency fund.

Data and Calculations:

Masters annual earnings = $40,000

Monthly expenses = $2,100

Maximum fund for emergency = $12,600 ($2,100 x 6)

Minimum fund for emergency = $6,300 ($2,100 x 3)

Thus, Jack Masters should aim to put aside $6,300, which represents three months of his living expenses, while the maximum fund for emergency should be $12,600 or six months of monthly expenses.

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