Question

question 2 of 10
eli’s employer covers 60% of the cost of a $4900-per-year health insurance plan, and eli’s share of the cost of the plan is his only optional deduction. how much is deducted from eli’s paycheck each month for health insurance?
a. $163.33
b. $245.00
c. $167.66
d. $397.00

Explanation:

Step1: Find Eli's annual share

The employer covers 60%, so Eli pays \(100\% - 60\% = 40\%\) of the annual cost. The annual cost is $4900, so Eli's annual share is \(0.4\times4900 = 1960\) dollars.

Step2: Find monthly deduction

To find the monthly deduction, divide the annual share by 12 (months in a year). So, \(\frac{1960}{12}\approx163.33\) dollars.

Answer:

A. $163.33