Question

Greg earns an annual salary of $55,000. If his employer's base rate for worker's compensation insurance is $12.63 per $100 paid to employees, how much does the employer pay per year for worker's compensation?

a) $6,936.50
b) $6,963.00
c) $7,228.50
d) $7,235.00

Answer 1

The employer pays 6,936.50 per year for worker's compensation.

Step-by-step explanation:

To calculate how much the employer pays per year for worker's compensation, we need to find the amount of the base rate that applies to Greg's salary. Greg earns an annual salary of 55,000, and the employer's base rate is 12.63 per 100 paid to employees.

To find the amount that corresponds to Greg's salary, we can set up a proportion. Let x be the amount the employer pays per year for worker's compensation. The proportion is:

12.63 / 100 = x / 55,000

Simplifying the proportion, we can cross-multiply to find that:

100 * x = 12.63 * 55,000

Then, we can divide both sides of the equation by 100 to isolate x:

x = (12.63 * 55,000) / 100

Using a calculator, we can compute this value to be 6,936.50. Therefore, the employer pays 6,936.50 per year for worker's compensation.