Answer:
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<u>Question 12</u>
Luisa's annual contributions:
- Group Med = 25% of $12,988
(as employer pays 75%) - Dental = $980
- Vision = $324
25% of $12,988
= 0.25 × $12,988
= $3,247
(a) Total annual contribution:
= Group Med + Dental + Vision
= $3,247 + $980 + $324
= $4,551
(b) Bi weekly deduction:
= $4,551 ÷ 365 × 14
= $174.56
OR
= $4,551 ÷ 52 × 2
= $175.04
**It depends how you calculate biweekly - if you divide the annual amount by 365 days then multiply by 14, OR if you divide the annual amount by 52 weeks then multiply by 2**
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<u>Question 13</u>
Boris' annual contributions:
- HMO = 10% of $8,190
(as employer pays 90%) - Dental = 50% of $662
- Vision = 50% of $288
HOM - 10% of $8,190:
= 0.1 × $8,190
= $819
Dental - 50% of $662:
= 0.5 × $662
= $331
Vision - 50% of $288:
= 0.5 × $288
= $144
Total annual contribution:
= HMO + Dental + Vision
= $819 + $331 + $144
= $1,294
Weekly deduction:
= $1,294 ÷ 365 × 7
= $24.82
OR
= $1,294 ÷ 52
= $24.88
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**It depends how you calculate weekly - if you divide the annual amount by 365 days then multiply by 7, OR if you divide the annual amount by 52 weeks**
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<u>Question 14</u>
Annual contributions:
- PPO = $12,640
- Dental = $866
- Vision = $444
Total annual contribution:
= $12,640 + $866 + $444
= $13,950
Quarterly payments:
= $13,950 ÷ 4
= $3,487.50
