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)
• 8%
• 5.6%
• 9.6%
• 8.3%
To find the percent of the household's income that needs to be set aside for the baby's college fund, we need to divide the required amount for the college fund by the net income of the household and then multiply by 100 to express it as a percentage.
The amount needed for the college fund is $90,000.
The net income of the household is $60,000.
So the percent of the household's income that needs to be set aside for the baby's college fund is: (90,000 / 60,000) * 100 = 150%.
Therefore, none of the given options - 8%, 5.6%, 9.6%, 8.3% - is correct.