Question

1. Ruth Lockwood earns $2,917 a month as a supervisor for Acme

Steel. Her group medical coverage costs $6,240 per year. The
company pays 75% of the cost of group insurance.
a. Find the percent paid by Ruth.
b. Find the total amount paid annually by Ruth.
c. How much is deducted each month from her paycheck
for medical insurance?

Answer 1

a. 25%

b. $1560

c. $130

Explanation:

a.

If 75% is paid by company, the rest is paid by Ruth.

Out of 100%, 75% is paid by company, so Ruth pays 100 - 75 = 25%

b.

Per year, the total amount paid is 6240, but Ruth pas 25% of this. So,

25% = 0.25

To get the answer, we multiply 0.25 with 6240.

0.25 * 6240 = 1560

So, $1560 is paid by Ruth annually.

c.

Since 1560 is paid annually (in 12 months), each month Ruth has to pay:

1560/12 = $130

Hence, $130 is deducted each month from her paycheck