4
QuizMultiple Choice

Health Insurance

Question 4 • 26-27 Ignite Financial Literacy Personal Finance - EL3403

Billy’s employer pays for 65% of his annual health insurance premium. Billy has the rest deducted in equal amounts from his paycheck. If Billy has $105.73 withheld from his paychecks twice each month, how much does his employer contribute towards his health insurance on an annual basis?

Answer
A
$683.18
B
$1,366.36
C
$2,356.27
D
$4,712.54

Explanation

Billy pays the 35% of the premium not covered by his employer. His annual deductions are $105.73 × 24 paychecks = $2,537.52, so the full annual premium is $2,537.52 ÷ 0.35 ≈ $7,250.08. The employer contributes 65% of that, or about $4,712.54, which is choice D.

AI-written and checked against the verified answer.

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