Question

Floyd's employer purchased a health insurance plan that costs $825 per month. Floyd pays $105 toward the plan each month. What is the annual value of the employer's contribution?

Answer 1

825-105=720. 720x12=8640

Answer 2

Answer: The annual value of the employer's contribution is $8640.

Explanation:

Since we have given that

Amount that is incurred by Floyd's employer purchase a health insurance = $825

Amount he paid towards the plan = $105

So, that means the remaining amount is paid by the employer.

So,Monthly Remaining amount would be

`825-105\\\\=\$720`

So, Annual value of the employer's contribution is given by

`\$720* 12\\\\=\$8640`

Hence, the annual value of the employer's contribution is $8640.