Kerri Payne is employed by Caterer's Central. She has a family membership in the health insurance program. The annual premium is $6,486. Kerri's employer pays 80% of the total cost. Her contribution is deducted from her paycheck. What is Kerri's annual contribution?

This is the concept of commercial arithmetic, we are required to calculate the amount that Kerri contributes towards her health insurance if the total annual contribution is $6,486 and the employer pays 80% of this;

percentage insurance that Kerri pays is:

1000-80

=20%

Annual premium = $6,486

Amount paid by Kerri will be:

20/100*[total amount paid]

20/100*6,486

=$1,297.2

The answer is $ 1,297.2