Question

Stanley McBride is employed by the True Blue company. The PPO annual premium is $7,058. His employer pays 70% of the total cost. His contribution is deducted from his paycheck. What is Stanley’s weekly deduction?

Answer 1

Answer:

$40.72.

Step-by-step explanation:

We have been given that The PPO annual premium is $7,058. Stanley's employer pays 70% of the total cost.

First of all, let us find the annual amount paid by Stanley for PPO. Since his employer pays 70% of the total cost, so the amount paid by Stanley will be 30% (100%-70%) of the total cost.

$\text{The annual amount paid by Stanley for PPO}=\frac{30}{100}\times \ 7,058$

$\text{The annual amount paid by Stanley for PPO}=0.30\times \ 7,058$

$\text{The annual amount paid by Stanley for PPO}= 2117.40$

To find Stanley' weekly deduction, we need to divide annual amount paid by Stanley by 52 as 1 year is equal to 52 weeks.

$\text{Stanley's weekly deductions}=\frac{\ 2117.40}{52}$

$\text{Stanley's weekly deductions}=\ 40.719230769\approx \ 40.72$

Therefore, Stanley's weekly deduction is approximately $40.72.

Answer 2

First deducte his contribution
7,058−7,058×0.70
=2,117.4
Then find weekly deduction
2,117.4÷52
=40.72