Answer:
$265.932
Step-by-step explanation:
We have been given that the cost of $500,000 worth of 20-year-term life insurance for Shanika is $73.87 per month. Shanika's employer covers 70% of this cost. We are asked to find the amount that is deducted from Shanika's gross income per year for life insurance.
Since Shanika's employer covers 70% of her life insurance, so Shanika pays 30% (100%-70%) of her life insurance.
Let us find amount paid by Shanika per month for life insurance.
[tex]\text{Amount paid by Shanika for life insurance per month}=\$73.87\times\frac{30}{100}[/tex]
[tex]\text{Amount paid by Shanika for life insurance per month}=\$73.87\times0.30[/tex]
[tex]\text{Amount paid by Shanika for life insurance per month}=\$22.161[/tex]
To find amount paid by Shanika is one year, we will multiply $22.161 by 12 as 1 year is equal to 12 months.
[tex]\text{Amount paid by Shanika for life insurance per year}=\$22.161\times 12[/tex]
[tex]\text{Amount paid by Shanika for life insurance per year}=\$265.932[/tex]
Therefore, $265.932 is deducted from Shanika's gross income per year for life insurance.
