Question

You are a traveling sales representative for Lawn Care. You have medical, dental, term life insurance, and travel insurance coverages through the company. Medical coverage costs $3,690.00 a year, dental coverage costs $194.00 a year, and travel insurance costs $92.00 a year. The company pays 80% (.80) percent of the medical, 70% (.70) percent of the dental, and 85% (.85) percent of the travel insurance. Term life insurance is entirely paid for by the company. How much is deducted each month from your paycheck for these coverages?

Answer 1

Explanation:

lawn care ? is obviously only here to confuse us. has no impact and can be ignored.

similar teem life insurance, which is fully paid by the company, and has no impact on any paycheck deductions.

so, we only need to focus on

medical costs $3690 per year.

dental costs $194 per year.

travel insurance costs $92 per year.

the company pays 80% of medical, which means we have to pay for 20%.

$3690 = 100%

20% = 100%/5 = 3690/5 = $738

so, we get $738 deducted from our paycheck per year. per month we need to split this into 12 parts :

738 / 12 = $61.50 per month

the company pays 70% of dental, which means we have to pay for 30%.

$194 = 100%

30% = 100%×3/10 = 194×3/10 = 582/10 = $58.20 per year.

per month we need to split this into 12 parts again :

58.2/12 = $4.85 per month

the company pays 85% of travel insurance, which means we have to pay for 15%.

$92 = 100%

15% = 100%×15/100 = 92×15/100 = 1380/100 = $13.80 per year.

per month we need to split this into 12 parts again :

13.8/12 = $1.15 per month

so, each month

$61.50

$ 4.85

$ 1.15

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$67.50 are deducted from the paycheck for these coverages