Question

Richard Feynman is employed by a big company. He has a family membership in his company's health insurance program. The annual premium is $5,432. Richard's employer pays 80% of the total cost. Richard's contribution is deducted from his paycheck. What is his annual contribution?

Options:
a. $1,086.40,
b. $1,125.65,
c. $1,527.98,
d. $1,567.20

Answer 1

Richard Feynman pays 20% of the annual health insurance premium, which amounts to $1,086.40. This is calculated by taking 20% of the total premium of $5,432.

Step-by-step explanation:

The student's question is related to determining what Richard Feynman's annual contribution to his health insurance premium is, given that his employer covers 80% of the total cost. The total annual premium for the health insurance membership is $5,432. To calculate Richard's contribution, we compute 20% of the total premium, since he is responsible for the remaining portion after his employer pays 80%.

To calculate 20% of $5,432, we use the following calculation:

0.20 × $5,432 = $1,086.40

So, Richard's annual contribution to the health insurance premium is $1,086.40, which makes option (a) the correct answer.