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

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