Question

A small welding shop employs four welders and one secretary. A​ workers' compensation insurance policy charges a premium of $ 10.57 per​ $100 of gross wages for the welders and  $ 1.31 per​ $100 of gross wages for the secretary. If each welder earns $ 37 comma 000 per​ year, and the secretary earns $ 24 comma 000 per​ year, what is the total annual premium for this​ insurance?

Answer 1

Answer:

Total annual premium for this insurance will be $15958.

Step-by-step explanation:

A​ workers' compensation insurance policy charges a premium of $ 10.57 per​ $100 of gross wages for the welders and $ 1.31 per​ $100 of gross wages for the secretary.

If the gross earning per year for one welder is $37000 and that of the secretary is $24000, then the total premium for each welder per year is $37000 \times \frac{10.57}{100} = 3910.9$ dollars.

And the total premium of the secretary per year is $24000 \times \frac{1.31}{100} = 314.4$ dollars.

Since there are 4 welders in the shop, so the total annual premium for this insurance will be $(4 × 3910.9 + 314.4) = $15958 (Answer)