Question

Your company's health insurance plan costs $585 per employee per month. There are 64 employees. Another health insurance company would charge 10 percent less. What would be the total savings per year? need help asap

Answer 1

To calculate the total annual savings from switching health insurance plans, subtract 10 percent from the current monthly cost per employee, and then multiply the difference by the number of employees and by 12 months to get the yearly savings, which totals $44,928.

Step-by-step explanation:

The question involves calculating the potential annual savings when switching to a health insurance plan that is 10 percent less expensive than the current plan costing $585 per employee per month. With 64 employees under the current plan, the total monthly cost is calculated by multiplying $585 by 64. The alternative plan's monthly cost per employee would then be 10 percent less, which is $585 - ($585 * 0.10). The monthly savings for all employees combined is found by subtracting the total cost of the alternative plan from the total cost of the current plan. Finally, to get the total annual savings, the monthly savings are multiplied by 12.

The total annual savings from switching to the cheaper plan is computed as follows:

1. Calculate the monthly savings per employee: $585 - ($585 * 0.10) = $526.50 per employee.
2. Calculate the total monthly savings for all employees: $585 * 64 - $526.50 * 64 = $3,744.
3. Multiply the monthly savings by 12 to find the total annual savings: $3,744 * 12 = $44,928.

Answer 2

$44, 928

Step-by-step explanation:

There are 64 employees in the company.

each employee costs $585 per month.

The total cost for all 64 employees per month will be

=64 x $585

=$37,440

The annual expenditure of employees insurance

= Monthly costs x 12

=$37,440 x 12

=$449,280

A 10 percent savings will be

=10/100 x $449,280

=$44, 928