Question

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?

Answer 1

$265,93 Apex confirmed

Explanation:

Answer 2

$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.