Question

Mr. Henderson’s annual premium of $4,668 is covered entirely by his employer along with 25% of the $9,264 premium for his wife and kids. How much of the Henderson family’s annual premium is being paid for by Mr. Henderson’s employer?
a.
$2,316
b.
$3,483
c.
$6,984
d.
$10,431

Answer 1

To determine how much of the Henderson family’s annual premium is being paid for by Mr. Henderson’s employer, we need to calculate the costs covered by the employer for both Mr. Henderson’s premium and the part of his wife and kids' premium that the employer pays.

1. **Mr. Henderson's Premium:**
- The employer pays his entire premium: **$4,668**.

2. **Wife and Kids' Premium:**
- Total premium for wife and kids: **$9,264**.
- The employer pays 25% of this premium:
\[
0.25 \times 9,264 = 2,316
\]

3. **Total Amount Paid by Employer:**
- Combine the employer's contributions:
\[
4,668 + 2,316 = 6,984
\]

Thus, the total amount of the Henderson family's annual premium being paid for by Mr. Henderson’s employer is **$6,984**.

The correct answer is **c. $6,984**.