Question

The cost of $500,000 worth of 30-year term life insurance for Erika is $91.04per month. If Erika's employer covers 60% of this cost, how much is deductedfrom Erika's gross income per year for life insurance?O A. $655.49B. $218.50O C. $436.99D. $327.74

Answer 1

We know that

• The cost is $91.04 per month.

,

• Erika's employer covers 60% of this cost.

,

• The time is 30 years.

First, we find the amount per month that her employer pays.

$91.04\times0.60=54.624$

Then, we subtract

$91.04-54.62=36.416$

This means the amount of $34.42 is deducted from Erika each month.

Now, we multiply this amount by 12 to find the amount per year.

$36.416\times12=436.99$Therefore, the answer is C.

The amount per year is $436.99, approximately.