Suppose Gretchen's health insurance has a $500 annual deductible. Gretchen is responsible for 20 percent co-pay when she meets her deductible. If Gretchen has $800 in medical expenses this year, how much must she pay?
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Suppose Gretchen's health insurance has a $500 annual deductible. Gretchen is responsible for 20 percent co-pay when she meets her deductible. If Gretchen has $800 in medical expenses this year, how much must she pay?
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- Rachel's health insurance policy has a monthly premium of $500. She has a $1,000 annual deductible, after which she pays 80% and the insurance company pays 20%. Her maximum annual co-insurance is $2,000. What is Rachel's maximum out of pocket cost per year, not counting any co-pays she might incur? O $2,000 O $3,000 O $3,500 O $9,000Asha feels she needs $45,000 per year in retirement. If she receives $30,000 a year from Social Security , at what interest rate must Asha invest her $25,000 of savings for her total income to be at least $45,000 per yearmust Billy pay? How much must his insurance company pay? 10. Mr. Whitaker works for Dawn Industries. His family is covered by one health insurance policy. He pays via a biweekly deduction of $44.50 from his paycheck (this is his premium). Dawn Industries contributes $15.75 to his insurance company every two weeks. How much does Mr. Whitaker pay per year for his family's health coverage? How much does Dawn Industries pay?
- Susan's annual salary is $50,000. She contributes 10% of her salary to her 401(k) plan; and her employer contributes 6% of her salary to a profit sharing plan. She also contributes $3,000 per year to an IRA. What is Susan's approximate savings rate?Nancy is a widow with two teenage children. Nancy's gross income is 54200 per month, and taxes take about 22% of her income. Using the income method, Nancy calculates she will need to purchase about eight times her disposable income in life insurance to meet her needs. How much insurance should Nancy purchase?1. Mary and Sue both work for WAWA. They both make $50,000 and they also each have $1000 a year in health care expenses. Mary deposits $1000 a year into a dependent care flexible spending account while Sue does not. They both have a tax rate of 15%. How much does Mary save vs. Sue in a given year?
- Felicity is 50 years old and earns $115,000 per year. She saves 12% of her annual gross income for retirement. Felicity will pay off her mortgage by the time she retires. Her monthly payment is $1,950.21. The current FICA payroll tax rate is 7.65%. Calculate her wage replacement ratio using the top-down approach (round to the nearest %) and using pre-tax dollars. Assume that she wants to maintain her lifestyle, so no other changes in expenditures. (Hint: Top-down approach starts with current income and subtracts off expenses that will go away in retirement. The new number divided by the current income is the wage replacement ratio). A. 80% B. 68% C. 88% D. 60%Jenny, who is married and the mother of three, is 25 years old and expects to work until 70. She earns $45,000 per year. Jenny expects inflation to be 3% over her working life, and the appropriate risk-free discount rate is 5%. Her personal consumption is equal to 25% of her after-tax earnings, and her combined federal and state marginal tax bracket is 15%. What is the amount of life insurance necessary for Jenny using the Human Life Value method? $509,893.63. $743,672.85. $855,597.84. $900,000.00.Emily is covered by her company's health insurance plan. The health insurance costs her company $19,500 a year. During the year, Emily is diagnosed with a serious illness and health insurance pays $80,000 for surgery and treatment. How much of the insurance and treatment payments are taxable to Emily? Answer:
- The Tucker family has health insurance coverage that pays 65 percent of out-of-hospital expenses after a deductible of $1,360 per person. If one family member has doctor and prescription medication expenses of $4,000, what amount would the insurance company pay?Dianne earns 19,600 per year. Her employer deducts 2,800 per year for income and social security taxes. How much money does she have for other expenses each month?Mary, who is married and the mother of three, is 35 years and expects to work until 75. She earns $55,000 per year. Mary expects inflation to be 3% over her working life, and the appropriate risk-free discount rate is 5%. Her personal consumption is equal to 27% of her after-tax earnings, and her combined federal and state marginal tax bracket is 15%. 1) What is the amount of life insurance necessary for Mary using the Human Life Value method? Solve it correctly. I'll rate