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?(1 point)

Question

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?(1 point)

Responses

8%
8%

5.6%
5.6%

8.3%
8.3%

9.6%

Answer 1

To calculate the percentage of Arianna's household income that needs to be set aside for the baby's college fund, we can divide the desired savings amount by the annual net income and then multiply by 100.

$90,000 / $60,000 * 100 = 150%

Therefore, Arianna will need to set aside 150% of her household's income for the baby's college fund.

None of the given options (8%, 5.6%, 8.3%, 9.6%) match the calculated percentage.