Question
Pat and Marie have the following expenses and account balances: Pats annual 401(k) plan contribution $ 16,500 Pats annual salary $100,000 Current liabilities $ 24,000
Pat and Marie have the following expenses and account balances:
Pats annual 401(k) plan contribution $ 16,500
Pats annual salary $100,000
Current liabilities $ 24,000
Housing costs (P&I&T&I) monthly $ 2,167
Cash & Cash equivalents $ 18,000
Monthly nondiscretionary cash flows $ 6,000
Monthly debt payments other than housing $ 500
* Pats employer matches $1 for $1 up to 3% of Pats salary in his 401(k) plan.
Based on the information above calculate their savings rate:
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Financial Management Theory And Practice
Authors: Prasanna Chandra
8th Edition
0071078401, 978-0071078405
