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22 June, 21:35

Georgia, a widow, has take-home pay of $600 a week from her part-time job. Her disability insurance coverage replaces 70 percent of her earnings after a four-week waiting period. What amount would she receive in disability benefits if an illness kept Georgia off work for 16 weeks

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  1. 22 June, 23:06
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    Disability benefit = $5,040

    Explanation:

    Given:

    Pay off per week = $600

    Insurance coverage = 70 percent = 0.70

    Waiting period = 4 week

    Computation of disability benefits:

    Disability benefit = Per Week benefit * Total Number of Covered weeks

    = (Insurance coverage * Pay off per week) * (off work - Waiting period)

    = (0.70 * $600) * (16 - 4)

    = $420 * 12

    = $5,040
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