Question

Gerome Houser is a pastry chef at McKay’s Eatery. His annual salary is $45,623. His benefits include $1,755 for two weeks of vacation, $3,898 for health insurance, $661 for Medicare, $2,828 for Social Security, and $2,098 for unemployment insurance. He also gets paid $1,404 for eight holidays throughout the year. What is the rate of benefits rounded to the nearest tenth of a percent?

Answer 1

First, we add up all the benefits that Gerome Houser gets from his job. That is,
$1,755 + $3,898 + $2,898 +$2,098 +$1,404 = $12,053
Then, we divide this amount by his annual salary and multiply the quotient by 100% to get the answer.
($12,053 / $45,623) x 100% = 26.4%
Therefore, Gerome Houser's rate of benefits is approximately 26.4%.