Question

7. Marlene expects her gross income to be $54,000 this year, and she expects her required deductions to amount to $15,000. Her employer covers 90% of the cost of a $4800-per-year health insurance plan and 80% of the cost of a $900-per-year life insurance plan, with the remainder of the cost coming out of Marlene's pay, and Marlene also expects to contribute 8% of her gross income this year to her 401(k) plan. She wants to calculate how much she will receive for each of her twice-monthly paychecks. (5 points: Part I - 1 point; Part II - 1 point; Part III - 1 point; Part IV - 1 point; Part V - 1 point)Part I: How much will Marlene pay for health insurance this year?Part II: How much will Marlene pay for life insurance this year?Part III: How much will Marlene contribute to her 401(k) plan this year?Part IV: What is Marlene's projected take-home pay for the year?Part V: How much will Marlene receive for each of her twice-monthly paychecks?

Answer 1

Answer:

Part 1: Marlene's pay for health insurance = $480

Part 2: Marlene's pay for life insurance = $180

Part 3: Marlene's contribution to here 401(k) plan = $4320

Part 4: Marlene's projected take home for the year = $34,020

Part 5: Marlene's take home for each of her twice-monthly paychecks = $1417.5

Step-by-step explanation:

Marlene's expected gross income = $54000

Part 1:

Her employer covers 90% of the cost of a $4800-per-year health insurance plan

Since her employer covers 90% of the cost, Marlene will pay 10% of the cost

Marlene's pay for health insurance = 10% of $4800

Marlene's pay for health insurance = (10/100) x $4800

Marlene's pay for health insurance = $480

Part 2:

Her employer pays 80% of the cost of a $900-per-year life insurance plan.

Marlene will pay 20% of the cost of a $900-per-year life insurance plan.

Marlene's pay for life insurance = (20/100) x $900

Marlene's pay for life insurance = $180

Part 3:

Marlene also expects to contribute 8% of her gross income this year to her 401(k) plan

Marlene's contribution to here 401(k) plan = (8/100) x $54000

Marlene's contribution to here 401(k) plan = $4320

Part 4:

Marlene's projected take home for the year = (Marlene's expected gross income) - (Deductions) - (Health insurance pay) - (Life insurance pay) - ( 401(k) plan)

Marlene's projected take home for the year = $54000 - $15000 - $480 - $180 - $4320

Marlene's projected take home for the year = $34,020

Part 5:

She will receive her twice-monthly paychecks 24 times in a year

Marlene's take home for each of her twice-monthly paychecks = $34020/24

Marlene's take home for each of her twice-monthly paychecks = $1417.5