Question

You just graduated college (age 23) and now have your dream job of a computer animator. Your gross salary is 43,000 a year. Answer the following questions about saving and deductions.

1.Once you are hired, you must choose health insurance. You choose an annual premium of $4,500 and your company pays 75% of the premium. The rest is deducted from your monthly paycheck. How much is deducted?

Answer 1

$93.72

Explanation:

To be able to find how much is deducted from our paycheck monthly, we have to compute for the total amount left to pay for the health insurance.

Insurance = $4500

Company % = 75% or 0.75

Total amount left = $4500- $4500x0.75

Total amount left = $1125

Now that we know the total amount left, we simply divide the total by 12 to find the monthly payments.

Monthly Payment = $1125/12

Monthly Payment = $93.72

So a total of $93.72 will be deducted from our monthly paycheck for the health insurance.

Answer 2

$93.75

Explanation:

We first determine the amount deducted per year;

25% of 4500; 0.25*4500 = $1,125

The amount deducted monthly will be;

1125/12 = $93.75