Question

Harold Wagner pays a $325.00 premium annually. This represents 40% of the total premium. The rest of the premium is paid by his employer. Calculate: a. the company's percentage a0% b. the total premium $ a1 c. the company's payment $ a2

Answer 1

a). The company's percentage=60%

b). The total premium=$812.50

c). The company's payment=$487.50

Explanation:

a).

The total premium can be expressed as;

T=H+R

where;

T=proportion of total premium

H=proportion paid by Harold Wagner

R=remaining proportion

In our case;

T=100%

H=40%

R=r

replacing;

100%=40%+r

r=100%-40%

r=60%

The company's percentage=60%

b).

The total premium, if 40%=$325.00

Let total premium be=t

40% of t=325

(40/100)×t=325

0.4 t=325

t=325/0.4

t=$812.50

The total premium=$812.50

c).

The company's payment=60% of total premium

The company's payment=(60/100)×812.5

The company's payment=$487.50