John earns $3000 monthly income and he decides to set aside 10 percent as savings.In his savings,John wants to reserve 20 percent in his emergency fund.What amount would John accumulate in his emergency fund annually?
A)$600
B)$300
C)$360
D)$720

Question

Quizplus · Accepted Answer

John's monthly savings would be 10% of his monthly income, which is:

10% of $3000 = $300

Then, he wants to reserve 20% of this amount for his emergency fund, which is:

20% of $300 = $60

Now, we just need to multiply this amount by 12 (for the 12 months in a year) to find out the annual amount:

$60 x 12 = $720

Therefore, the amount John would accumulate in his emergency fund annually is $720, which is option D.

John Earns $3000 Monthly Income and He Decides to Set