Q7

Tim and Autumn Davis are trying to figure out their current financial health. They will pay off their car loan in three years, their gross household income is $5,700 per month, and they receive $95 per month in interest income from their investments. They have listed the following items from their most recent statements.

Savings account: $3,200

Checking account: $1,800

Credit card balance: $3,000

Car loan balance: $18,000

Car market value: $15,000

Furniture market value: $4,000

Stocks and bonds: $15,000

What is their month's living expenses covered ratio?

A.

1.23 months

B.

2 months

C.

1.75 months

D.

Not enough information to answer this question