A company has 200 employees who are eligible for child care benefits. The company will pay eligible employees 25% of child day care costs, up to a maximum of $500 per child per month.
If an employee has 2 children in day care at a cost of $500 per child per month, how much will the employee receive in company day care benefits per year?
what is 25% of 500?
for each of 2 kids...
for each of 12 months...
To calculate the annual company day care benefits for an employee with 2 children in day care, we need to determine the monthly benefit per child and then multiply it by 12 months.
First, let's calculate the monthly benefit per child. The company will pay eligible employees 25% of child day care costs, up to a maximum of $500 per child per month.
Since the cost per child is $500 per month and the company will pay 25% of the costs, the monthly benefit per child is 25% of $500:
25% × $500 = $125
So, for each child, the employee will receive $125 per month.
Now, let's calculate the annual benefit for 2 children. We'll multiply the monthly benefit per child by the number of months in a year:
$125 × 12 = $1500
Therefore, the employee will receive $1500 in company day care benefits per year for 2 children in day care.