To reach the desired amount of $90,000 in 18 years, Arianna needs to save $90,000 / 18 = $<<90000/18=5000>>5000 per year.
Since Arianna and her husband's net income is $60,000, she needs to save $5,000 / $60,000 = 8.3% of their income.
Therefore, the correct answer is 8.3%.
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%
8.3%
9.6%
5.6%
1 answer