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

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

Answer 1

To find the percent of her household's income that needs to be set aside for the baby's college fund, we need to divide the amount needed for the fund by the net income and then multiply by 100.

Amount needed for the college fund: $90,000
Net income of Arianna and her husband: $60,000

Percent of income needed to be set aside: ($90,000 ÷ $60,000) x 100 = 150%

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