Question

Jewlien’s group medical insurance coverage costs $94.50 semimonthly. His employer pays 65% of the cost. How much is the annual premium?

Answer 1

Answer:

Annual premium = $793.8

Explanations:

Note that a premium is the amount that is paid to the insurer on a periodic basis.

The insurance coverage cost semimonthly = $94.50

The monthly insurance coverage cost = 2 x 94.50

The monthly insurance coverage cost = $189

The employer pays 65% of the cost

`\begin{gathered} \text{Amount paid by the employer monthly = }(65)/(100)*189 \\ \text{Amount paid by the employer monthly = \$122.85} \end{gathered}`

Monthly premium = $189 - $122.85

Monthly premium = $66.15

Annual premium = 66.15 x 12

Annual premium = $793.8