Personal Finance 1st Edition by Jack R. Kapoor

Exercise 31

Calculating the Amount for an Emergency Fund. Beth and Bob Martin have total take-home pay of $4,000 a month. Their monthly expenses total $2,900. Calculate the minimum amount this couple needs to establish an emergency fund. How did you calculate this amount?

Step 1 of 5

Emergency fund is the amount that can be obtained immediately in case of emergency.