Sarah’s essential (fixed) expenses are $750 per month, her essential (flexible) expenses are $500 per month, and her non-essential expenses are $250 per month. her 401-k retirement account has $6,000, her education savings account has $3,000, and her emergency fund savings account has $2,300. sarah wants an emergency fund of 5 times monthly living expenses. how much more does sarah need to save to have an adequate emergency fund?

a.
$1,450
b.
$5,200
c.
$0
d.
$950

Option B. $5,200 is correct answer.

Step-by-step explanation:

Sarah's essential (fixed) expenses = $750 per month

Her essential (flexible) expenses = $500 per month

Her non-essential expenses = $250 per month

Her total monthly living expenses = 750 + 500 + 250 = $1,500

Sarah wants an emergency fund of 5 times monthly living expenses.

1500 × 5 = $7,500

Currently she is having her emergency fund savings account is = $2,300

She needs to save more = 7,500 - 2,300 = $5,200

Sarah need to save more $5,200.

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step-by-step explanation:

graph b

step-by-step explanation:

one solution- graph a (clear intercepting point.)

no solution- graph b (they're parallel, there will never be a point of interception.)

infinite solutions- graph c (all points intercept.)