Question

news reporter with a local station. the news station does not provide disability insurance. she purchases a policy through a local insurance agent that provides a benefit of $3,000 per month. if she is in the 30 percent tax bracket, what will her benefits equal after-tax?

Answer 1

To calculate the after-tax benefits, multiply the benefit amount by the tax percentage, and subtract the tax amount from the benefit amount. The after-tax benefits for a news reporter with a $3,000 monthly disability insurance benefit in the 30 percent tax bracket would amount to $2,100 per month.

Step-by-step explanation:

To calculate the after-tax benefits, we first need to calculate the tax amount on the disability insurance benefit. The student mentions that the tax bracket is 30 percent.

To find the tax amount, we multiply the benefit amount by the tax percentage: $3,000 x 0.30 = $900.

Now, to calculate the after-tax benefit, we subtract the tax amount from the benefit amount: $3,000 - $900 = $2,100.

Therefore, the after-tax benefit will equal $2,100.