2.5. practice\n5) lars olsen authorized a deduction of $163.75 from his monthly pay for group health…

2.5. practice\n5) lars olsen authorized a deduction of $163.75 from his monthly pay for group health insurance. his employer pays 45% of the cost. what is the annual premium amount for his group health insurance?\nannual\nlars amt = 163.75×12 = 1965\nlars % = 100 - 45 = 55 %\n1965 = a×55 %
Answer
Explanation:
Step1: Calculate annual deduction
$163.75\times12 = 1965$ (Annual amount paid by Lars)
Step2: Find Lars' percentage of cost
$100 - 45=55%$ (Lars pays 55% of the total cost)
Step3: Calculate annual premium
Let the annual premium be $a$. We know that $1965 = a\times0.55$. So, $a=\frac{1965}{0.55}=3572.73$
Answer:
$3572.73$