Question

Reka Rahim is employed at Damon's Deli. She has family medical coverage through the company's group medical plan. The annual cost of Reka's family coverage is $12,800. The company pays 80% of the cost. How much is deducted from her weekly paycheck for medical insurance?

a. $49.23
b. $196.92
c. $246.15
d. $2,560.00

Answer 1

Reka Rahim has 20% of her annual family medical coverage cost of $12,800 deducted from her paycheck. This amounts to $2,560 per year or $49.23 per week, which is the correct amount deducted from her paycheck.

Step-by-step explanation:

The question involves calculating the weekly insurance premium deduction from Reka Rahim's paycheck for her family medical coverage through Damon's Deli. The total annual cost of the family medical coverage is $12,800. Since the company pays 80% of this cost, Reka is responsible for the remaining 20%. To find out how much is deducted from her weekly paycheck, we first calculate 20% of the annual cost and then divide that by the number of weeks in a year.

The calculation is as follows:

• 20% of the annual cost: 0.20 × $12,800 = $2,560
• Weekly deduction: $2,560 ÷ 52 weeks = $49.23

Therefore, a total of $49.23 is deducted from Reka Rahim's weekly paycheck for her family medical insurance coverage at Damon's Deli.