Question

Mark’s group medical insurance coverage costs $5,480 a year. His employer pays 65% of the cost. What is the amount of the deduction each month from his paycheck for medical insurance?

Answer 1

the cost of insurance is 5480 $

65 % is paid by employees salary,

so 65 % of 5480 is

`\begin{gathered} =5480*(65)/(100) \\ =3562\text{ \$} \end{gathered}`

so the amount paid by the employer is 3562 $

so the remaining amount is 5480 - 3562 = 1918 $

this is the total deduction in a year or 12 months,

so in 1 month deduction is = 1918/12 = 159.83 $ or approx 160 $