82.7k views
2 votes
The cost of $500,000 worth of 20-year-term life insurance for Shanika is

$73.87 per month. If Shanika's employer covers 70% of this cost, how much is
deducted from Shanika's gross income per year for life insurance?

User Biggy
by
8.2k points

2 Answers

4 votes

Answer:

$265,93 Apex confirmed

Explanation:

User Brettkelly
by
8.4k points
4 votes

Answer:

$265.932

Explanation:

We have been given that the cost of $500,000 worth of 20-year-term life insurance for Shanika is $73.87 per month. Shanika's employer covers 70% of this cost. We are asked to find the amount that is deducted from Shanika's gross income per year for life insurance.

Since Shanika's employer covers 70% of her life insurance, so Shanika pays 30% (100%-70%) of her life insurance.

Let us find amount paid by Shanika per month for life insurance.


\text{Amount paid by Shanika for life insurance per month}=\$73.87*(30)/(100)


\text{Amount paid by Shanika for life insurance per month}=\$73.87*0.30


\text{Amount paid by Shanika for life insurance per month}=\$22.161

To find amount paid by Shanika is one year, we will multiply $22.161 by 12 as 1 year is equal to 12 months.


\text{Amount paid by Shanika for life insurance per year}=\$22.161* 12


\text{Amount paid by Shanika for life insurance per year}=\$265.932

Therefore, $265.932 is deducted from Shanika's gross income per year for life insurance.

User Adis Azhar
by
8.1k points
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