Question

Lars Olsen authorized a deduction of $163.75 from his monthly pay for group health insurance. His employer pays 45% of the cost. What is the annual amount for his group health insurance?

a. $1,122.30
b. $1,350.00
c. $3,525.00
d. $5,000.25

Answer 1

To find the annual amount for Lars Olsen's group health insurance, we calculate the total cost of the insurance and subtract the amount that his employer pays.

Step-by-step explanation:

To find the annual amount for Lars Olsen's group health insurance, we need to calculate the total cost of the insurance and then subtract the amount that his employer pays.

First, we'll find the total monthly cost of the insurance: $163.75 / (1 - 0.45) = $297.50.

Next, we'll multiply the monthly cost by 12 to find the annual amount: $297.50 * 12 = $3,570.

Therefore, the annual amount for Lars Olsen's group health insurance is option c. $3,525.00.