If the minimum savings level is $3$ months of living expenses, $6$ months is a better level of savings.

Consider the $$48,000$ annual salary and the same take home pay amount you stated in question $3$a$$

above and answer the following questions considering a level of savings equal to $6$ months of your living

expenses.

a$)$ What is the amount you should maintain in a liquid savings account?

b$)$ How long will it take for you to establish a liquid savings of $6$ months of your living expenses?

Consider a rate of return on a simple savings account of $2\%$ with monthly compounding.