Question

Lara Otero is employed by Parks Inc. She is on a single plan with a PPO annual premium of $6,009. Lara's employer pays 75% of the total cost. Her contribution is deducted from her paycheck. What is Lara's semimonthly deduction?

Answer 1

If Lara's company pays 75% then she pays 25%. So the total she pays in 1 year (annual) of her premium is: $6,009.00 * 0.25 = $1502.25 So, each month she pays 1/12 of that amount or: $1502.25 / 12 = $125.1875 or rounded to nearest penny $125.19

Answer 2

The answer is $62.59