Question
2 The monttly salary of Mr. Ekuboan is GHd 3,750-00 he pays \& a loan of GHt l So0.00 and contributes \( 5 \% \) of the amonn left as insurance for his age 1 parents. Find his monttly insurance contribution.
Ask by Bob Dawson. in Ghana
Jan 21,2025
Real Tutor Solution
Tutor-Verified Answer
Answer
Mr. Ekuboan's monthly insurance contribution is GH₵ 112.50.
Solution
Let's break down Mr. Ekuboan's monthly finances to determine his insurance contribution.
1. **Monthly Salary:**
- **Total Salary:** GH₵ 3,750.00
2. **Monthly Expenses:**
- **Loan Payment:** GH₵ 1,500.00
3. **Amount Remaining After Loan Payment:**
\[
\text{Remaining Amount} = \text{Total Salary} - \text{Loan Payment} = GH₵ 3,750.00 - GH₵ 1,500.00 = GH₵ 2,250.00
\]
4. **Insurance Contribution:**
- **Percentage for Insurance:** 5%
- **Calculation:**
\[
\text{Insurance Contribution} = 5\% \times \text{Remaining Amount} = 0.05 \times GH₵ 2,250.00 = GH₵ 112.50
\]
**Conclusion:**
Mr. Ekuboan's monthly insurance contribution is **GH₵ 112.50**.
Reviewed and approved by the UpStudy tutoring team
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Simplify this solution Bonus Knowledge
First, let's determine Mr. Ekuboan's remaining salary after his loan payment. He earns GHD 3,750.00 and pays a loan of GHD 1,500.00. This leaves him with GHD 3,750.00 - GHD 1,500.00 = GHD 2,250.00. Now, to find out his monthly insurance contribution, which is 5% of this remaining amount, we calculate 5% of GHD 2,250.00, resulting in GHD 112.50. So, Mr. Ekuboan's monthly insurance contribution is GHD 112.50.
