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How much money will an employee who earns [tex]\$90,000[/tex] per year pay in annual premium if using the long-term disability plan?

\begin{tabular}{|l|r|r|}
\hline
& Short-term Disability & Long-term Disability \\
\hline
Benefit & $60\%[tex]$ of salary & $[/tex]50\%[tex]$ of salary \\
\hline
Annual Premium & $[/tex]1\%[tex]$ of salary & $[/tex]2\%$ of salary \\
\hline
\end{tabular}

[tex]\$[?][/tex]


Sagot :

To determine how much money an employee who earns [tex]$90,000 per year will pay in annual premium for the long-term disability plan, we need to follow these steps: 1. Identify the annual salary of the employee: The employee earns \$[/tex]90,000 per year.

2. Determine the rate of the annual premium for the long-term disability:
According to the table, the annual premium for the long-term disability plan is 2% of the employee's salary.

3. Calculate the annual premium:
To find out how much the annual premium will be, multiply the employee's annual salary by 2% (which can also be written as 0.02):

[tex]\[ \text{Annual Premium} = \text{Salary} \times \text{Long-term Disability Rate} \][/tex]

Plugging in the values:

[tex]\[ \text{Annual Premium} = 90000 \times 0.02 \][/tex]

4. Perform the multiplication:
[tex]\[ 90000 \times 0.02 = 1800.0 \][/tex]

Therefore, the employee will pay \$1800.0 annually for the long-term disability plan.