1 answer
(click or scroll down)
The total savings needed for the child's college fund is $90,000.
The number of years until the child goes to college is 18.
Therefore, the amount that needs to be set aside each year is $90,000/18 = $5,000.
The total net income of Arianna and her husband is $60,000.
Therefore, the percentage of their net income that needs to be set aside for the baby's college fund is ($5,000/$60,000)x100 = 8.33%.
Therefore, the correct answer is B. 8.3%.