To determine how much money an employee who earns [tex]$90,000 per year will pay in annual premium for the long-term disability plan, we need to follow these steps:
1. Identify the annual salary of the employee:
The employee earns \$[/tex]90,000 per year.
2. Determine the rate of the annual premium for the long-term disability:
According to the table, the annual premium for the long-term disability plan is 2% of the employee's salary.
3. Calculate the annual premium:
To find out how much the annual premium will be, multiply the employee's annual salary by 2% (which can also be written as 0.02):
[tex]\[
\text{Annual Premium} = \text{Salary} \times \text{Long-term Disability Rate}
\][/tex]
Plugging in the values:
[tex]\[
\text{Annual Premium} = 90000 \times 0.02
\][/tex]
4. Perform the multiplication:
[tex]\[
90000 \times 0.02 = 1800.0
\][/tex]
Therefore, the employee will pay \$1800.0 annually for the long-term disability plan.
