# 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
283
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.

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.