The cost of $500,000 worth of 30-year-term life insurance for Rico is $66.60 per month. If Rico's employer covers 90% of this cost, how much is deducted from Rico's gross income per year for life insurance?

I might be a bit rusty with my math here, but I'll give it a shot.
A 30-year life insurance of $500,000 costs Rico $66.60 per month. His employer pays for 90% of his life insurance. So we need to find 90% of $500,000. So the equation we would use is:
500,000*0.90=450,000
This means that his employer covered 90%, or $450,000, of his 30-year life insurance.
I hope I was of some help : )

Answer Link

ApusApus ApusApus · Answer 2 · 2019-04-02T08:00:02+02:00

Answer:

$79.92.

Step-by-step explanation:

We have been given that the cost of $500,000 worth of 30-year-term life insurance for Rico is $66.60 per month.

First of all we will find 10% of $66.60 as Rico pays 10% (100-90%) of the insurance's cost per month.

[tex]\text{Monthly deduction from Rico's income}=\frac{10}{100}*\$66.60[/tex]

[tex]\text{Monthly deduction from Rico's income}=0.10*\$66.60[/tex]

[tex]\text{Monthly deduction from Rico's income}=\$6.66[/tex]

Now we will multiply $6.66 by 12 to find the amount deducted from from Rico's gross income per year for life insurance.

[tex]\text{The amount deducted from Rico's gross income per year for life insurance}=\$6.66*12[/tex]

[tex]\text{The amount deducted from Rico's gross income per year for life insurance}=\$79.92[/tex]

Therefore, an amount of $79.92 is deducted from Rico's gross income per year for life insurance.