If Iliza saves $550 per month, how many months will it take to reach $11,000 for her emergency fund?

• A. 15 months
• B. 20 months
• C. 22 months
• D. 25 months

Answer: (B)

To reach a fixed savings goal with a constant monthly contribution, divide the goal by the monthly amount. 11,000 ÷ 550 equals 20, so after 20 months the total saved would be 550 × 20 = 11,000. That means the emergency fund target is met exactly in 20 months. For quick context, saving for 15 months would yield 8,250, 22 months would yield 12,100, and 25 months would yield 13,750—all not matching the exact goal, which is why 20 months is the precise answer.