Question

Michele Dover is employed at Sigma Systems. She has family medical coverage through the company’s group medical plan. The annual cost of Michele’s family coverage is $5,800. The company pays 53% of the cost. How much is deducted from her weekly paycheck for medical insurance?

Answer 1

$52.42 is deducted weekly


$5,800 x %53 = $3,074

$5,800 - $3,074 = $2,726

$2,726 / 52 (total weeks in a year) = $52.42

Answer 2

$52.42.

Explanation:

We have been given that the total annual cost of Michele's family coverage is $5,800. The company pays 53% of the cost.

First of all let us find 47% of $5800 as 47% (100-53=47) of the annual cost of medical insurance is paid by Michele.

`\text{The amount of family coverage paid by Michele annually}=(47)/(100)* \$5800`

`\text{The amount of family coverage paid by Michele annually}=0.47* \$5800`

`\text{The amount of family coverage paid by Michele annually}=\$2726`

Now let us divide total amount paid by Michele by 52 as a year has 52 weeks.

`\text{Amount deducted from Michele's weekly paycheck for medical insurance}=(\$2726)/(52)`

`\text{Amount deducted from Michele's weekly paycheck for medical insurance}=\$52.4230769\approx \$52.42`

Therefore, $52.42 is deducted from Michele's weekly paycheck for medical insurance.