In order to solve, we must first calculate how much money is deducted from Rico's paycheck per month.
This plan costs $66.60 per month, which Rico's employer covers 90%. To find Rico's monthly deduction, we multiply:
$66.60 x .90 = $59.94 < this is the amount Rico's EMPLOYER pays per month. Subtract this amount from $66.60 to find Rico's monthly payment:
$66.60 - $59.94 = $6.66 < this is how much is deducted from Rico's paycheck MONTHLY for the plan. The question, however, asks for the YEARLY amount. To calculate, simply multiply the monthly payment x 12:
$6.66 x 12 = $79.92 < this is the yearly amount deducted from Rico's account for this life insurance plan.
Answer: $79.92/B
