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

8.3%

5.6%

9.6%

8%

Answer 1

To determine the percentage of Arianna's household income that needs to be set aside for the baby's college fund, we need to divide the desired amount in the savings account ($90,000) by the total net income per year ($60,000) and multiply by 100 to get the percentage.

(90,000 / 60,000) * 100 = 150

Therefore, 150% of Arianna's household income needs to be set aside for the baby's college fund. However, as percentages cannot exceed 100%, it means that Arianna's household will need to set aside 100% of their income for the baby's college fund.

None of the given answer choices matches this result, so there may be an error or missing information in the problem statement.