Question

12 multiple choice 1 point darrel wants to save $1,800 for an upcoming vacation and decides to use the 50-30-20 rule. how will that help darrel meet his goal? he will save $30 for every $50 he spends he will split his savings into buckets: 50% for an emergency fund, 30% for vacation, and 20% for debt repayment he will save $50 per week until he meets his goal he will save 20% of his total after - tax income 13 multiple choice 1 point what does it mean if a person lives paycheck - to - paycheck? they use their entire paycheck to cover monthly expenses and have very little money saved they use direct deposit, so their paycheck is automatically split between their checking and savings accounts their income varies month - to - month and they save a large portion of their biggest paychecks they have high - paying jobs, so dont have to worry about how much is in each paycheck

Explanation:

Question 12 (Darrel's Savings)

The 50 - 30 - 20 rule in personal finance is about allocating after - tax income: 50% for needs, 30% for wants, and 20% for savings (including debt repayment). Option 1 misinterprets the rule. Option 2 misapplies the buckets (the 50 - 30 - 20 is for income allocation, not savings buckets as described). Option 3 has no relation to the 50 - 30 - 20 rule. Option 4 correctly states that the 50 - 30 - 20 rule involves saving 20% of after - tax income.

Living paycheck - to - paycheck means that a person's income (paycheck) is just enough to cover their monthly expenses, and they have little or no savings left. Option 1 matches this definition. Option 2 describes direct deposit and splitting accounts, not living paycheck - to - paycheck. Option 3 describes a situation of variable income with savings, which is not paycheck - to - paycheck. Option 4 describes people with high - paying jobs who don't worry about money, which is the opposite of living paycheck - to - paycheck.

Answer:

D. He will save 20% of his total after - tax income

Question 13 (Living Paycheck - to - Paycheck)