Question

Josh is a manager for Sound Pharmaceuticals. His family medical coverage is through the group medical plan that Sound provides for its employees. The annual cost of Josh’s family coverage is $12,312. The company pays 60% of the cost. How much does he pay weekly for medical insurance?

Answer 1

First, we are going to find 60% of the annual cost. This is the amount that the insurance company pays annually:

`12312\text{ x 0.60 =7387.2 }`

that is, the annual cost of Josh’s family coverage that the company pays is $7387.2. Now, we remove that annual value from the original value, in order to obtain what Josh spends annually on insurance:

`12312-7387.2\text{ = 4924.8}`

Then, Josh spends annually on insurance the amount of $4924.8. Now, we are going to divide that value into the 52.14 weeks that approximately one year has:

`(4924.8)/(52.14)\text{ }\approx\text{94.4}5`

Then, we can conclude that he pay weekly for medical insurance an amount of $94.45.