If youd like to set up an emergency fund that can cover 6-month living expenses,...
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Accounting
If youd like to set up an emergency fund that can cover 6-month living expenses, which is $2,500 per month. You decide to put aside $1000 each year into Vanguard Prime Money Market Fund, which earns you 2% per year.
a) How long will it take you to establish the emergency fund?
b) If you get a gift of $5,000 from your rich aunt today, how much do you need to save each year to get the fund established in 5 years?
Please show your calculation
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