Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Concept explainers
Question
3. What percentage of Mary’s income does she spend on health insurance?
Transcribed Image Text:Health Care on Minimum Wage Worksheet
Example: Mary's Bi-Weekly Minimum Wage Paycheck in Arizona
Earnings
Rate
Hours
This Pay
Year To Date
Period
Regular
$5.85
80
$468
Gross Pay
$468
$11,232
Deductions
Federal Income
$40.20
Тах
Social Security
$29.02
Тах
$6.79
$4.02
Medicare Taх
State Income
Таx
Health
$26.54
Insurance
Net Pay
$361.43
$8,674.32
Transcribed Image Text:Mary's Story:
Mary is a high school graduate who decided to take a few years to work before entering college.
She is no longer eligible for her parent's insurance and has signed up for her company's PPO
health insurance plan. She pays $637 per year for her insurance premium, and has a $400 yearly
deductible. After she meets the deductible, her insurance will cover 80% of any treatment, while
she will be responsible for 20% of the treatment. Her doctor visit co-pay is $15, her emergency
room co-pay is $75, and her hospital co-pay is $100 for pre-approved admissions. Her co-pays
for prescription medications are $11 for generic drugs and $24 for preferred drugs. Mary does
not get paid time off work.
Mary has two roommates, and her share of the rent and utilities comes to $300 per month.
Because she owns a used car, she has no monthly car payment, but she does pay $80 per month
for car insurance and an average of $120 per month for gas, bringing her average monthly
раy
expenses to $500.
Expert Solution
Step 1
Here we have,
Mary`s bi monthly income = $468
Mary`s bi monthly health insurance =$26.54
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