Question

Lance has a single plan. The HMO premium is $9,255. His employer pays 70% of the cost. How much does lance pay annually? How much is deducted from his weekly paycheck?

Answer 1

a) $2776.5 annually

b) $53.4 per week

Explanation:

Given:-

- The cost of HMO plan, C = $9,255 annually

- Employer pays 70% of cost.

Find:-

How much does lance pay annually? How much is deducted from his weekly paycheck?

Solution:-

- The HMO plan costs $9,255 while Employer pays 70% of the cost, Lance pays the remaining 30%.

Amount paid by Lance = 30% of C

= ( 30 / 100 )*( $9,255 )

= $2776.5 annually

- The amount paid is cut annually from his paycheck. On weekly basis the amount would be, 1 year = 52 weeks

$2776.5 --------> 52 weeks

x ---------> 1 week

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x = $2776.5 / 52 = $ 53.4 per week

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Answer 2

If the amount shown is annual then Lance pay

$2,776.5 annually

$53.39 weekly

Explanation:

Total premium amount is $9,255

As given, 70% amount is paid my employer

It means Lance is left with

$9,255 - 70% * $9,255 = 9255 - 6478.5 = $2,776.5

It means Lance pay $2,776.5 annually.

As we know, there are 52 weeks in an year, so the weekly deducted amount will be

2776.5/52 = 53.39.

Amount deducted per week is $53.39