Arianna has just had a child. She and her husband's net income is $60,000 a year between them.

Question

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?

Answer 1

First find how much total money Arianna and her husband save each year by dividing their net income by the number of years until the account needs to contain $90,000: $90,000 total / 18 years = $<<90000/18=5000>>5,000/year
Then divide the savings necessary per year by their net income and multiply by 100% to express the answer as a percentage: $5,000 / $60,000 = 0.0833... * 100% = 8.33...%. Answer: \boxed{8}.

Answer 2

After graduating from high school, Estrella plans to work for two years while living at home.
She will work 50 weeks a year.
Develop a plan that will enable her to save $26,000 for a two-year program at a community college.

Answer 3

To determine how much Estrella needs to save each week, divide the total amount she needs to save by the number of weeks she will be working: $26,000 / 50 weeks = $520/week.

So Estrella needs to save $520 per week to reach her goal of $26,000 over a two-year period.