7
QuizMultiple Choice

Topic Test

Question 7 • POP Financial Math 26/27

Michael needs to pay car insurance premiums of $958 two times per year. He has decided to make deposits from each paycheck to a savings account for “Other Expenses (Predictable)” to cover this expense. How much should Michael deposit from each paycheck if the paycheck is bi-weekly?

Answer
A
$80
B
$74
C
$160
D
$37

Explanation

Michael’s annual insurance cost is $958 × 2 = $1,916. With bi-weekly pay, he receives 26 paychecks per year, so he should set aside $1,916 ÷ 26 ≈ $73.69 from each paycheck. Rounded to the nearest dollar, that is $74, choice B.

AI-written and checked against the verified answer.

Previous
Next