Question

Hi can somebody please explain the second question and how you got it?

Thank you in advance!

Answer 1

Nice work on getting part (a) correct.

The 261% falls in the "250-300%" range, so they pay 8.5% of their yearly income toward health insurance.

8.5% of $65,500 = 0.085*65500 = 5567.50

That represents the yearly contribution. Divide that by 12 to find the monthly contribution.

5567.50/12 = 463.95833 = 463.96 approximately

Then round to the nearest dollar to get 464

Answer to part (b) is 464