Question

Shelly's employer pays for 42% of her annual health insurance premium of $5,450.00. Shelly pays the remaining balance by having it deducted in equal amounts from her 26 paychecks throughout the calendar year. How much will shelly have deducted from each paycheck?

Answer 1

$121.57

Explanation:

Cost of Insurance Premium = $5,450.00

since 42% of it is paid by the company and remaining 58% is Paid by Shelly.

So, amount that Shelly have to pay annually =
`(58)/(100)`×5,450

= $3161.

This Amount is paid by Shelly through 26 Paychecks ,

So, Through each paycheck , Shelly have to pay =
`(3161)/(26)`

= $121.57

Answer 2

$88.3

Explanation:

Here 42% of annual health premium($5450)=
`(42)/(100)`*5450

=$2289

This amount is being paid by the company means it is deducted amount in one year.

One year has 26 paychecks so above amount divided by 26 is rebate amount in each paycheck.

Deducted amount=
`(2289)/(26)`

=$88.30