There's no way to answer the question based solely on the information you shared. Here are several of the kinds of issues you'll want to think through in determining the percentage:
Of your various goals, where would you place your daughter's college savings? In other words, how important is it relative to your retirement and other financial goals?
Out of the $110,000, how much surplus funds do you have now after living expenses, debt reduction (if any), budgeted savings toward other financial goals (retirement, for example), and so on? In other words, what is your "capacity" to save for college?
Your daughter is only 7 but do you already have any sense for whether or not she's academically-oriented?
What kind of post-secondary training will your daughter likely attend and what's the price tag (in current dollars)? Public or private? Community college first two years, then transfer? Live at home while attending college? Vocational/technical training?
Do you expect to pay the "full ride" for your daughter or will you expect her to work, obtain scholarships, take loans?
Do you have other younger children or anticipate having more children in the future? How will savings toward your 7 year old daughter's college affect/balance out with theirs?
The answers to these questions--coupled with a college savings calculator--should help you figure out how much to save.
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