Question

Question 4: Stacy has health insurance through her job. Her total cost of health insurance for the year is $4,000, but her employer covers 40% of the cost. How much will be deducted from Stacy’s monthly income for health insurance?

Health insurance deduction per month:

Stacy’s adjusted net monthly income (question 3 - monthly health insurance cost):

(question 3 monthly income is 2,475.72)

can you work this out step by step

Answer 1

Sure! Let's break down the calculation step by step.

### Step 1: Calculate the total cost of health insurance for the year.
The total cost of health insurance for the year is given as $4,000.

### Step 2: Calculate the employer's contribution.
Stacy's employer covers 40% of the cost:
\[
\text{Employer's Contribution} = 0.40 \times \text{Total Cost} = 0.40 \times 4000 = 1600
\]

### Step 3: Calculate Stacy's share of the health insurance cost.
To find out how much Stacy has to pay, we subtract the employer's contribution from the total cost:
\[
\text{Stacy's Cost} = \text{Total Cost} - \text{Employer's Contribution}
\]
\[
\text{Stacy's Cost} = 4000 - 1600 = 2400
\]

### Step 4: Calculate the monthly health insurance deduction.
Since we need to find the monthly deduction, we divide Stacy's annual cost by 12:
\[
\text{Monthly Health Insurance Deduction} = \frac{\text{Stacy's Cost}}{12}
\]
\[
\text{Monthly Health Insurance Deduction} = \frac{2400}{12} = 200
\]

### Step 5: Calculate Stacy's adjusted net monthly income.
Stacy’s adjusted net monthly income is given as $2,475.72. To find this adjusted amount after the health insurance deduction:
\[
\text{Adjusted Net Monthly Income} = \text{Monthly Income} - \text{Monthly Health Insurance Deduction}
\]
\[
\text{Adjusted Net Monthly Income} = 2475.72 - 200 = 2275.72
\]

### Summary
- **Monthly Health Insurance Deduction:** $200
- **Adjusted Net Monthly Income:** $2,275.72

That's the breakdown of the calculations!