Hillary pays $9.25 of her monthly life insurance, and her employer covers the rest. if her monthly premium is #$36.50, what is the annual value to Hillary of this benefit?
12 times the company's monthly contribution, right?
12(36.50 - 9.25) = 327.00
The value of the benefit is what the company chips in, right? She has to pay some of it herself, so that part is not a benefit, but an expense.
To calculate the annual value of Hillary's life insurance benefit, we need to determine the amount her employer covers and then multiply it by the number of months in a year.
First, let's find out the amount Hillary pays each month. We are given that Hillary pays $9.25 of the monthly premium, so we subtract this from the total monthly premium to find the amount her employer covers:
Employer covered amount = Total monthly premium - Hillary's contribution
Employer covered amount = $36.50 - $9.25
Employer covered amount = $27.25
Now, we have the monthly amount her employer pays. To find the annual value, we will multiply this amount by 12 (as there are 12 months in a year):
Annual value = Employer covered amount * 12
Annual value = $27.25 * 12
Annual value = $327
Therefore, the annual value to Hillary of this benefit is $327.