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Hitman42 [59]
3 years ago
14

After a deduction for dental insurance was taken out, mike's annual net income went from $65,150 to $65,000. if mike pays 25% of

the cost of his dental insurance plan with his employer covering the rest, how much does his employer contribute toward his dental insurance plan per year?
Business
1 answer:
hram777 [196]3 years ago
4 0
Mike's contribution = 65,150 - 65,000 = 150 = 25% of dental insurance plan 
<span>--> Company pays 75% = 3 x 150 = $450/year </span>

<span>(You have to assume that dental insurance deduction is tax-exempt or you would have to factor in also his tax bracket and thus the gross contribution as oppose to net contribution. I am pretty sure DID is tax-exempt)</span>
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