Solve the following problem:

The total annual premium for health insurance for Martina is [tex]\$7705[/tex]. Her employer pays [tex]90\%[/tex] of the premium and deducts the remainder from her paycheck. Martina is paid biweekly.

How much is deducted from her paycheck for health insurance?

A. [tex]\$29.63[/tex]
B. [tex]\$32.10[/tex]



Answer :

Sure, let's solve the problem step-by-step.

1. Understand the total annual premium:
The total annual premium for health insurance for Martina is given as [tex]$7705. 2. Calculate Martina's share of the premium: Her employer pays \(90\%\) of the annual premium. Therefore, Martina has to pay the remaining \(10\%\). \[ \text{Martina's share} = \text{Annual Premium} \times (1 - \text{Employer Percentage}) \] \[ \text{Martina's share} = 7705 \times (1 - 0.90) = 7705 \times 0.10 = 770.50 \] 3. Determine the number of pay periods: Martina is paid biweekly. There are \(52\) weeks in a year. Since she is paid biweekly, she gets paid every \(2\) weeks. \[ \text{Number of pay periods} = \frac{52}{2} = 26 \] 4. Calculate the deduction per paycheck: The total amount Martina needs to pay is spread over 26 pay periods. Therefore, the deduction from each paycheck is: \[ \text{Deduction per paycheck} = \frac{\text{Martina's share}}{\text{Number of pay periods}} \] \[ \text{Deduction per paycheck} = \frac{770.50}{26} \approx 29.63 \] Therefore, the amount that is deducted from Martina's paycheck for health insurance is \( \$[/tex] 29.63 \).