Sure, let's walk through the solution step-by-step.
1. Determine the employee's monthly contribution:
- The employer pays 75% of the total premium, which means the employee pays the remaining 25%.
- The amount deducted from the paycheck ($50.15) represents the 75% share paid by the employer.
2. Calculate the 25% share paid by the employee:
- To find the employee's monthly contribution, we divide $50.15 by 75 to find the per percent cost, then multiply by 25 (since 25% is the employee's share).
- Employee's monthly contribution = ([tex]$50.15 / 75) 25 ≈ $[/tex]16.7167
3. Determine the total monthly premium (employer + employee):
- Add the amount the employer pays to the amount the employee pays to get the total monthly premium.
- Total monthly premium = [tex]$50.15 (employer's contribution) + $[/tex]16.7167 (employee's contribution) ≈ $66.8667
4. Calculate the annual premium:
- Multiply the total monthly premium by 12 to determine the annual premium.
- Annual premium = [tex]$66.8667 12 ≈ $[/tex]802.40
Thus, the annual premium for the health insurance is approximately $802.40.
