Question

The cost of $500,000 worth of 30-year-term life insurance for Edna is $121.04 per month. If Edna’s employer covers 80% of this cost, how much is deducted from Edna’s gross income per year for life insurance

Answer 1

If Edna's gross income should be deducted $121.04 per month for life insurance, then she should be deducted
`121.04*12=1452.48` in a year.

Since her boss covers 80%, she will only need to be deducted 20% for life insurance. Getting 20% of 1,452.48, we'll get:


`1452.48*0.20=290.50`

ANSWER: $290.50 is deducted from Edna's gross income per year for life insurance.