Question

Billy’s employer pays for 65% of his annual health insurance premium. Billy has the rest deducted in equal amounts from his paycheck. If Billy has $105.73 withheld from his paychecks twice each month, how much does his employer contribute towards his health insurance on an annual basis?

Answer 1

d

Explanation:

Answer 2

4712.54

Explanation:

His total annual premium 4712.54 . Billy received the deducted by $105.73 paycheck, twice a month throughout the year, so he received 24 deducted paychecks in a year. The sum of all the deducted $105.73 amount throughout the year will be the 35% of Billy's total annual health insurance premium.

To get the amount his employer contribute towards his health insurance on an annual basis, we will have to multiply the sum deducted by twice a month throughout the year in which he received deducted paychecks.

105.73 * 24 = 2537.52

The next step is to divide our answer with 35% of Billy's total annual health insurance premium.

x = 2537.52/.35

x = 7250.06

7250.06 * 0.65 = 4712.54