question 7 (1 point) retake question you own a small construction company with 5 employees. your employees…

question 7 (1 point) retake question you own a small construction company with 5 employees. your employees currently make $21.18 per hour and work on average 47 hours a week. your insurance company just informed you that your workman compensation insurance will increase 8% next year. if your current annual premium paid is calculated by $45.06 per $100 in wages earned per week for your workers, what will be your new yearly insurance cost for next year. round your answer to the nearest cent. your answer: answer units

question 7 (1 point) retake question you own a small construction company with 5 employees. your employees currently make $21.18 per hour and work on average 47 hours a week. your insurance company just informed you that your workman compensation insurance will increase 8% next year. if your current annual premium paid is calculated by $45.06 per $100 in wages earned per week for your workers, what will be your new yearly insurance cost for next year. round your answer to the nearest cent. your answer: answer units

Answer

Explanation:

Step1: Calculate annual wages

First, find the weekly wage per employee: $21.18\times47 = 995.46$. Then for 5 employees, the weekly total wage is $995.46\times5=4977.3$. Annual wage (assuming 52 weeks a year) is $4977.3\times52 = 258819.6$.

Step2: Calculate increase due to wages

The increase in insurance due to wages: $\frac{258819.6}{100}\times45.06=\ 11652.41$.

Step3: Calculate increase due to percentage

Let the current annual premium be $P$. The increase due to the 8% rise is $0.08P$.

Step4: Calculate new premium

The new premium is $P + 11652.41+0.08P=1.08P + 11652.41$. But since we don't know the value of $P$, we assume $P = 0$ for the part - due to previous premium (as we are mainly calculating the new cost based on new factors here). So the new cost due to wage - related and percentage - related increase is $11652.41$.

Answer:

$11652.41$