Question

The monthly cost of a short term disability insurance policy varies directly as the salary of the employee. Wanda has an annual salary of $37,500, and the monthly cost for her policy is $18.75. Randy has an annual salary of $47,000. What should Randy expect to pay for his policy?

Answer 1

To find out what Randy should expect to pay for his policy, we can set up a proportion using the given information and solve for the unknown. The monthly cost for Randy is approximately $23.44.

Step-by-step explanation:

To solve this problem, we can set up a proportion using the given information. We know that the monthly cost of the policy varies directly with the salary of the employee. Let's set up the proportion:

(Monthly cost for Wanda) / (Wanda's salary) = (Monthly cost for Randy) / (Randy's salary)

Substituting the given values, we have:

18.75 / 37500 = (Monthly cost for Randy) / 47000

To solve for the monthly cost for Randy, we can cross-multiply and solve for the unknown:

(18.75)(47000) = 37500(Monthly cost for Randy)

Dividing both sides by 37500, we find that:

Monthly cost for Randy = (18.75)(47000) / 37500

Calculating this, we get:

Monthly cost for Randy ≈ $23.44