Question

Reggie heard that as a general rule, he should save at least 10% of his take- home pay. If Reggie's take-home pay is $2340 per month, what is the minimum amount per year that he should save?

Answer 1

10% of 2,340 per month is $234. Multiply that by 12 and you have:

$2,808 Per Year.

Answer 2

We are given to understand as per the problem that one must save 10% of their take home pay.

Reggie's take home pay is $2,340 per month

As per the rule Reggie must save 10% of 2,340 per month = 0.10*2,340 = $234 per month

Since we need to know the savings in a year, we have to multiply the monthly savings by 12 since there are 12 months a year

Minimum amount per year that he should save = $234 *12 = $2,808

Minimum amount per year that he should save = $2,808