John earns $3000 monthly income and he decides to set aside 10 percent as savings. In his savings, John wants to reserve 20 percent as his emergency fund. What amount should John accumulate as emergency fund annually?

Question

Quizplus · Accepted Answer

John saves 10% of his $3000 monthly income, which is $300. Annually, this amounts to $300 x 12 = $3600. He reserves 20% of his savings as an emergency fund, which is 20% of $3600, equaling $720.

John Earns $3000 Monthly Income and He Decides to Set