Try this problem to see if you understand the concepts we ju

Try this problem to see if you understand the concepts we just studied. The answer can be found at the bottom of the portfolio page. Dharma and Greg have a combined monthly income of $5, 280.94. They want to save ahead for semiannual property taxes ($1, 146), semiannual car insurance ($493.21), and annual homeowners insurance ($893.20). What percentage of their income should be saved each month? (Semiannual means twice a year, by the way.)

Solution

So, total income of dharma and gregg is = $5280.94

Monthly combined income = 5280.94/12 = $440.07

Total yearly expenses = 1146*2 + 493.21 *2 + 893.2 = 4171.62$

On average monthly expenses = $347.65

So, they should save = 347.65*100/440.07 = 78.99 % of there income every month