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mi-businessMichigan Business Managementhard

A Michigan contractor operates as an LLC with 3 employees. The annual workers' compensation premium is $4,800, paid in 12 monthly installments. If the contractor adds 2 more employees mid-year, increasing the premium by 35%, what will be the adjusted monthly payment for the remaining 6 months?

Correct Answer

A) $540

Original monthly payment: $4,800 ÷ 12 = $400. New annual premium: $4,800 × 1.35 = $6,480. New monthly payment: $6,480 ÷ 12 = $540.

Answer Options
A
$540
B
$648
C
$840
D
$400

Why This Is the Correct Answer

Original monthly payment: $4,800 ÷ 12 = $400. New annual premium: $4,800 × 1.35 = $6,480. New monthly payment: $6,480 ÷ 12 = $540.

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