The cost of $500,000 worth of 30-year-term life insurance for Rico is $66.60 per month. If Rico's employer covers 90% of this cost, how much is deducted from Rico's gross income per year for life insurance?
A. $719.28
B. $79.92
C. $59.94
D. $799.20

Question

The cost of $500,000 worth of 30-year-term life insurance for Rico is $66.60 per month. If Rico's employer covers 90% of this cost, how much is deducted from Rico's gross income per year for life insurance?
A. $719.28 
   B. $79.92 
   C. $59.94 
   D. $799.20

anonymous · Answer

He spends $66 a month. Then he spends 12*$66 a year on it.

If employer spends 90% He spends 10%.

So Rico's part is: .10*12*$66