Arianna has just had a child. She and her husband's net income is $60,000 a year between them.
She has established a savings account for her child that needs to contain $90,000 after 18 years. What percent of her household's income will need to be set aside for the baby's college fund?
First find how much total money Arianna and her husband save each year by dividing their net income by the number of years until the account needs to contain $90,000: $90,000 total / 18 years = $<<90000/18=5000>>5,000/year
Then divide the savings necessary per year by their net income and multiply by 100% to express the answer as a percentage: $5,000 / $60,000 = 0.0833... * 100% = 8.33...%. Answer: \boxed{8}.
After graduating from high school, Estrella plans to work for two years while living at home.
She will work 50 weeks a year.
Develop a plan that will enable her to save $26,000 for a two-year program at a community college.
To determine how much Estrella needs to save each week, divide the total amount she needs to save by the number of weeks she will be working: $26,000 / 50 weeks = $520/week.
So Estrella needs to save $520 per week to reach her goal of $26,000 over a two-year period.