The cost of $500,000 worth of 30-year-term life insurance for rico is $66.60 per month. if rico's employer covers 90% of this cost, how much is deducted from rico's gross income per year for life insurance?
a.$59.94
b.$79.92
c.799.20
d.719.28

In order to solve, we must first calculate how much money is deducted from Rico's paycheck per month. 

This plan costs $66.60 per month, which Rico's employer covers 90%. To find Rico's monthly deduction, we multiply:

$66.60 x .90 = $59.94 < this is the amount Rico's EMPLOYER pays per month. Subtract this amount from $66.60 to find Rico's monthly payment:

$66.60 - $59.94 = $6.66 < this is how much is deducted from Rico's paycheck MONTHLY for the plan. The question, however, asks for the YEARLY amount. To calculate, simply multiply the monthly payment x 12: 

$6.66 x 12 = $79.92 < this is the yearly amount deducted from Rico's account for this life insurance plan.

 $79.92/B