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Georgia, a widow, has take-home pay of $600 a week. Her disability insurance coverage replaces 70 percent of her earnings after a four-week waiting period. What amount would she receive in disability benefits if an illness kept Georgia from work for 16 weeks

1 Answer

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Answer: $5,040

Explanation:

Disability benefit =( Weekly benefit × Covered weeks)

= (Insurance percent × Take-home pay) × (Weeks off work - Waiting period)

= (0.70 × $600) × (16 - 4)

= $5,040

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