Question

Fred's total insurance premium is $7,200 annually. His employer pays 60% of the total premium. How much does
Fred pay annually?

$4,320
$2,880
$600
$400

Answer 1

Answer:

Fred's annual payment = $ 2880

Explanation:

Given that,

The total insurance premium of Fred annually, P = $ 7,200

This premium amount is divided among Fred and his employer.

His employer pays 60 % of the premium and the remaining 40% is paid by Fred annually.

So, the amount paid by Fred is

                                       ( 7200/100) x 40 %

                                     = 2880

So, Fred's share of the premium to be paid annually is $2,880