am I doing this problem wrong?

Discussion in 'Homework Help' started by Maintenance Man, May 28, 2011.

  1. Maintenance Man

    Thread Starter New Member

    May 12, 2010
    25
    0
    I have a question about a word problem:
    A company pays 75% of each employees medical care premium. If the employee portion is $50 per month and there are 100 employees total. How much does the company pay each month for employee medical benefits? The choice of answers are $3300. $6700. $1500. And $20000. The way I have tried to figure the problem is $50 x 100 = $5000 for what employees pay out of pocket each month. The company pays 75%. 75% of $5000. 75/100 = n/5000. 75x5000=375000/100=$3750. Know my question is if the answers are wrong, or am I doing this problem wrong? Thank you for your help in advance.
     
  2. PatM

    Active Member

    Dec 31, 2010
    81
    72
    The employees are paying $5000 which is 25%.
    If the company pays 75% that is 3 times the 25%
    So $5000 times 3 would be $15000
    Note: Edited mistake in multiplying 5000x3
     
    Last edited: May 28, 2011
  3. beenthere

    Retired Moderator

    Apr 20, 2004
    15,815
    282
    Dropped a zero - that's $15,000.
     
  4. PatM

    Active Member

    Dec 31, 2010
    81
    72
    You are correct.
    So the answer would be $20,000
    The employees $5000 plus the company's $15000 = $20,000 Total for the insurance.
     
  5. someonesdad

    Senior Member

    Jul 7, 2009
    1,585
    141
    Another way to look at it is that the total monthly payment per employee is X. The employee pays 25% of that, which is $50. So 1/4 of X is 50; should be trivial then to figure out what X is.
     
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