For problems $2$ and $3,$ assume a marginal tax rate of $22\%$ when answering these questions.

$2.$ After starting your job, you have to pay for health insurance. This health insurance will cost you $$125$ per paycheck. You get paid twice a month. Health insurance premiums are a pre$-$tax item.

What is your tax savings because health insurance premiums are a pre$-$tax item?

What is your after$-$tax cost of the health insurance premiums?

How much do you have to earn to pay for these health insurance premiums?

How much would you have to earn to pay for the health insurance premiums if they were not treated as a pre$-$tax item?

$3.$ You start a job earning $$60,000$ a year. Your company offers a $401$k retirement plan. They offer a dollar$-$for$-$dollar match to your contributions up to the first $4\%$ of your salary that you put into your $401$k$.$ You decide you want to maximize your contributions at the lowest rate you can contribute. $401$k contributions are a pre$-$tax item.

What is your annual tax savings because $401$k contributions are a pre$-$tax item?

What is your after$-$tax cost of your $401$k contributions?

How much do you have to earn to pay for these $401$k contributions?

How much would you have to earn to pay for the same $401$k contributions if they were not treated as a pre$-$tax item?