Question

- Darrell Morris has a family plan. The HMO annual premium is $12,240. The employer pays 90% of the cost.

a) How much is Darrell's annual contribution? b) How much is his semimonthly deduction?

Answer 1

Answer:The employer pays .90 * 12240 = $ 11016. The emplyee pays .10 *12240 = $ 1224 = annual contribution. Contribution rate = (100% - 90%) = 10%.

Explanation:

Answer 2

a) $1,224

b) $51

Explanation:

a) To calculate Darrell's annual contribution, we need to determine the portion he pays out of the total premium.

Given that the employer pays 90% of the cost, Darrell is responsible for the remaining 10%.

Annual contribution = Total premium × 10%

= $12,240 × 0.10

= $1,224

Therefore, Darrell's annual contribution is $1,224.

b) To find Darrell's semimonthly deduction, we divide his annual contribution by the number of semimonthly periods in a year.

Number of semimonthly periods in a year = 12 (months) × 2 (semimonthly periods per month) = 24

Semimonthly deduction = Annual contribution / Number of semimonthly periods

= $1,224 / 24

= $51

Therefore, Darrell's semimonthly deduction is $51.

Hope this helps!