Answer: First option is correct.
Step-by-step explanation:
Since we have given that
Amount of Fred Johnson's total insurance premium = $1200
Percentage of total premium his employer pays = 60%
Remaining percentage of total premium he pays is given by
[tex]100\%-60\%=40\%[/tex]
So, amount of insurance premium Fred Johnson pay is given by
[tex]\frac{40}{100}\times 1200\\\\=40\times 12\\\\=\$480[/tex]
Hence, First option is correct.