Javier's employer pays for 43% of his annual health insurance premium. javier pays the remaining balance by having it deducted f
rom his paychecks in equal amounts twice a month throughout the year. if $157.38 is deducted from each of javier's paychecks, what is his total annual premium? a. $3,313.26
b. $4,392.00
c. $6,626.53
d. $8,784.00
<span>Let us start with the percentage of premium paid by Javier. Since the employer pays 43%, the remaining 57% (100-43) is paid by Javier. Now let us find out how much is deducted from his paychecks during the year. In one month, $157.38 x 2 = $314 .76 is deducted by the employer. So in 12 months, the amount equal to 57% of the health premium will be $314.76 x 12 = $3777.12.
If $ 3777.12 is 57% of a certain number, to find the number, multiply $3777.12 with the reciprocal of the fraction. (57/100)
So the unknown number = $3777.12 * 100/57 = $6626.53
Javier's total annual health premium, therefore, is $6626.53</span>
It is false because 401(k) accounts are not funded by employer's wages but <em>employees' </em>wages ; the latter voluntarily make contributions to a retirement account that is taken out of their wages before taxes . Employers on the other hand may partially or fully match a portion of these contributions.
