2.Samantha O'Reilly has come to your office for a second opinion about purchasing an individual long-term disability policy. She was told that her best option for reducing the cost of a policy is to choose a long elimination period. But she has become worried that she will not be able to pay her monthly expenses during an extended (year-long) elimination period. She has some savings, but she is afraid what she has is not enough.

a.If Samantha's current annual salary is $43,000, her taxes are $8,000, and she just barely manages to fund her Roth IRA each year with $5,000, how much of an emergency fund will she need to meet only her living expenses?

b.How long will it take Samantha to achieve the emergency fund goal from above if she currently has $18,500 saved, invests $300 per month, and earns an annual percentage yield (APY) of 4.25 percent after taxes in her money market mutual fund.

c.If she could reduce the policy elimination period to nine months for an additional premium of $10 per month, how much will she need to save monthly in the same money market account to reach her emergency fund goal within twelve months? Can she afford this savings payment if she suspends her IRA contribution for one year?