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%
8.3%
9.6%
9.6%
5.6%
5.6%
8%
To calculate the percent of Arianna's household income that needs to be set aside for the baby's college fund, we can divide the desired amount in the savings account ($90,000) by the household's net income ($60,000) and then multiply by 100 to convert it to a percentage.
($90,000 / $60,000) * 100 = 150%
This means that Arianna would need to set aside 150% of her household's income for the baby's college fund. However, since the options provided do not include this percentage, none of the given options are correct.