Question

Tessa’s employee benefits include family health care coverage. She contributes 18% of the cost. Tessa gets paid biweekly and $108.00 is taken out of each paycheck for family health care coverage. How much does her employer contribute annually for the family coverage? Clearly show your work.

Answer 1

The answer is $12792

Explanation:

It is known Tessa pays $108.00 to contribute to family coverage every two weeks and this represents 18% of the total payment. This implies the employer pays the 82% missing (100% - 18% = 82%). Additionally, with this information, it is possible to know the amount the employer has to pay every two weeks that represents 82%. The process is shown below:

1. Write the values you know and use x to represent the value you need to find

108 = 18        

  x =   82      

3. Cross multiply

x 18 = 8856

4. Find  the value of x by solving this simple equation

x = 8856 ÷ 18

x = 492 - Amount the employer pays every two weeks for Tessa's family coverage

Now that we know the money the employer pays every two weeks, it is possible to calculate the annual amount of money. Follow the process below.

1. Consider one year has a total of 52 weeks and divide this number of weeks by 2 because the payment for the family coverage occurs every 2 weeks

52 ÷ 2 = 26

2. Finally, multiply the money paid by the employer every two weeks by 26

26 weeks x $492 = $12792- This is the total the employer pays annually