Calculating Insurance Deductions

Oct 13, 2025 by wbrum.org 20 views

Introduction

Johnny, a hardworking individual, earns $\$850$ per week. However, his earnings are subject to certain deductions, including insurance and taxes. In this article, we will delve into the mathematical aspects of Johnny's paycheck, exploring the fraction of his earnings that are spent before he receives his full amount.

Calculating Insurance Deductions

First, let's calculate the amount Johnny pays for insurance. He pays $\$100$ for insurance, which is a fixed amount deducted from his earnings.

Insurance Deduction = $100

Calculating Tax Deductions

Next, we need to calculate the tax deductions. Johnny gets taxed $8\%$ on the rest of his earnings, which is the amount remaining after the insurance deduction. To calculate the tax deductions, we need to find the amount remaining after the insurance deduction.

Remaining Earnings = $850 - $100 = $750
Tax Rate = 8% = 0.08
Tax Deduction = Remaining Earnings x Tax Rate
Tax Deduction = $750 x 0.08 = $60

Calculating Total Deductions

Now, let's calculate the total deductions, including insurance and taxes.

Total Deductions = Insurance Deduction + Tax Deduction
Total Deductions = $100 + $60 = $160

Calculating the Fraction of Earnings Spent

To find the fraction of Johnny's paycheck that has been spent before he receives it, we need to divide the total deductions by his earnings.

Fraction of Earnings Spent = Total Deductions / Earnings
Fraction of Earnings Spent = $160 / $850
Fraction of Earnings Spent = 0.1882 (or approximately 18.82%)

Conclusion

In conclusion, Johnny's paycheck is subject to certain deductions, including insurance and taxes. By analyzing these deductions, we can determine the fraction of his earnings that are spent before he receives his full amount. In this case, approximately $18.82\%$ of Johnny's paycheck is spent before he receives it.

Answer

The correct answer is $\boxed{\frac{160}{850}}$ .

Discussion

This problem requires a basic understanding of mathematical concepts, including percentages and fractions. The solution involves calculating the total deductions, including insurance and taxes, and then dividing that amount by Johnny's earnings to find the fraction of his paycheck that has been spent.

Solutions

A person earns $\$1200$ per week and pays $5\%$ tax on their earnings. The tax deduction is $$1200 x 0.05 = $60$ . The fraction of their paycheck spent on taxes is $\frac{60}{1200} = \frac{1}{20}$ .
A person earns $\$900$ per week and pays $\$50$ for insurance. The fraction of their paycheck spent on insurance is $\frac{50}{900} = \frac{1}{18}$ .

References

[1] Khan Academy. (n.d.). Percentages. Retrieved from <https://www.khanacademy.org/math/algebra/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6b7d/x2f6
Q&A: Understanding Johnny's Paycheck =====================================

Q: What is the main concept of this problem?

A: The main concept of this problem is to calculate the fraction of Johnny's paycheck that has been spent before he receives it.

Q: What are the key factors that affect Johnny's paycheck?

A: The key factors that affect Johnny's paycheck are his earnings, insurance deductions, and tax deductions.

Q: How do insurance deductions affect Johnny's paycheck?

A: Insurance deductions are a fixed amount deducted from Johnny's earnings. In this case, he pays $\$100$ for insurance.

Q: How do tax deductions affect Johnny's paycheck?

A: Tax deductions are calculated as a percentage of Johnny's remaining earnings after the insurance deduction. In this case, he gets taxed $8\%$ on the rest of his earnings.

Q: What is the formula to calculate the fraction of earnings spent?

A: The formula to calculate the fraction of earnings spent is:

Fraction of Earnings Spent = Total Deductions / Earnings

Q: What is the total deduction in Johnny's case?

A: The total deduction in Johnny's case is the sum of the insurance deduction and the tax deduction.

Q: How do you calculate the tax deduction?

A: To calculate the tax deduction, you need to multiply the remaining earnings by the tax rate.

Q: What is the tax rate in Johnny's case?

A: The tax rate in Johnny's case is $8\%$ or $0.08$ .

Q: What is the fraction of earnings spent in Johnny's case?

A: The fraction of earnings spent in Johnny's case is $\frac{160}{850}$ or approximately $18.82\%$ .

Q: What is the significance of this problem?

A: This problem is significant because it helps us understand how different factors, such as insurance and taxes, affect an individual's paycheck.

Q: How can this problem be applied in real-life scenarios?

A: This problem can be applied in real-life scenarios where individuals need to calculate their take-home pay after deductions.

Q: What are some common mistakes to avoid when solving this problem?

A: Some common mistakes to avoid when solving this problem include:

Not considering the insurance deduction
Not calculating the tax deduction correctly
Not using the correct formula to calculate the fraction of earnings spent

Q: How can this problem be made more challenging?

A: This problem can be made more challenging by:

Increasing the tax rate
Adding more deductions, such as health insurance or retirement savings
Using more complex formulas to calculate the fraction of earnings spent

Q: What are some related problems that can be solved using similar concepts?

A: Some related problems that can be solved using similar concepts include:

A person earns $\$1200$ per week and pays $5\%$ tax on their earnings. What fraction of their paycheck is spent on taxes?
A person earns $\$900$ per week and pays $\$50$ for insurance. What fraction of their paycheck is spent on insurance?