Question

Stanley McBride is employed by the True Blue company. The PPO annual premium is $7,058. His employer pays 70% of the total cost. His contribution is deducted from his paycheck. What is Stanley’s weekly deduction?

Answer 1

First deducte his contribution
7,058−7,058×0.70
=2,117.4
Then find weekly deduction
2,117.4÷52
=40.72

Answer 2

$40.72.

Explanation:

We have been given that The PPO annual premium is $7,058. Stanley's employer pays 70% of the total cost.

First of all, let us find the annual amount paid by Stanley for PPO. Since his employer pays 70% of the total cost, so the amount paid by Stanley will be 30% (100%-70%) of the total cost.

`\text{The annual amount paid by Stanley for PPO}=(30)/(100)* \$7,058`

`\text{The annual amount paid by Stanley for PPO}=0.30* \$7,058`

`\text{The annual amount paid by Stanley for PPO}=$2117.40`

To find Stanley' weekly deduction, we need to divide annual amount paid by Stanley by 52 as 1 year is equal to 52 weeks.

`\text{Stanley's weekly deductions}=(\$2117.40)/(52)`

`\text{Stanley's weekly deductions}=\$40.719230769\approx \$40.72`

Therefore, Stanley's weekly deduction is approximately $40.72.