The cost of $500,000 worth of 20-year-term life insurance for shanika is $73.87 per month. if shanika's employer covers 70% of this cost, how much is deducted from shanika's gross income per year for life insurance?

$265.932

Step-by-step explanation:

We have been given that the cost of $500,000 worth of 20-year-term life insurance for Shanika is  $73.87 per month. Shanika's employer covers 70% of this cost. We are asked to find the amount that is deducted from Shanika's gross income per year for life insurance.

Since Shanika's employer covers 70% of her life insurance, so Shanika pays 30% (100%-70%) of her life insurance.

Let us find amount paid by Shanika per month for life insurance.

To find amount paid by Shanika is one year, we will multiply $22.161 by 12 as 1 year is equal to 12 months.

Therefore, $265.932 is deducted from Shanika's gross income per year for life insurance.