3. Gene, an assembly line worker at an automobile manufacturing plant, has take-home pay of $900 a week. He is injured in an accident that kept him off work for 18 weeks. His disability insurance coverage replaces 65 percent of his earnings after a six-week waiting period. What amount would he receive in disability benefits?

3. Insurance will replace 65 percent of $900, or $900 × 0.65 = $585 per week. Insurance will pay for 18 minus 6 weeks, or 12 weeks, or $585 × 12 = $7,020.

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Solutions I. Total expenses Deductible $ 1,380 - 600 $ 780 Insurance company will pay 75 percent of $780 or $780 x 0.75 = $585. 2. Total bill $ 850 Deductible - 300 $ 550 Rose pays $550 x 0.20 = $110 + $300 = $410. PPO covers $440 ($850-$410).