Question

Stan’s employer pays for 57% of his annual health insurance premium of $6,456.00. Stan pays the remaining balance by having it deducted in equal amounts from his 26 paychecks throughout the calendar year. How much will Stan have deducted from each paycheck?

a) $1,456.32
b) $2,768.44
c) $3,697.92
d) $4,556.00

Answer 1

Stan's employer pays for 57% of his health insurance premium. After calculating the employer's contribution, Stan's remaining share is $2,776.08 for the year. Dividing this by 26 paychecks, Stan will have approximately $106.77 deducted from each paycheck.

Step-by-step explanation:

The question involves calculating the amount that will be deducted from each of Stan's paychecks for his health insurance premium, after his employer pays a portion of it. First, we determine the employer's contribution, which is 57% of the total premium. We then subtract this amount from the total premium to find Stan's share. Lastly, we divide Stan's share by the number of paychecks he receives in a year to find the deduction amount from each paycheck.

Calculating the employer's contribution:

Employer's contribution = 57% of $6,456.00

Employer's contribution = 0.57 * $6,456.00 = $3,679.92

Now, we find Stan's share of the premium:

Stan's share = Total premium - Employer's contribution

Stan's share = $6,456.00 - $3,679.92 = $2,776.08

Finally, we divide Stan's share by the number of paychecks:

Deduction per paycheck = Stan's share / Number of paychecks

Deduction per paycheck = $2,776.08 / 26 ≈ $106.77

So, Stan will have approximately $106.77 deducted from each of his 26 paychecks.