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 9.6% 9.6% 8.3% 8.3% 5.6% 5.6% 8%
To determine the percentage of the household's income that needs to be set aside for the baby's college fund, divide the desired amount ($90,000) by the number of years (18), then divide that result by the annual net income ($60,000) and multiply by 100 to get the percentage.
($90,000 / 18) / $60,000 * 100 = 8.3%
Therefore, the correct answer is 8.3%.