What employer after-tax cost of providing health insurance

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Problem1 : Rachel receives employer provided health insurance. The employer's cost of the health insurance is $7,000 annually. What is her employer's after-tax cost of providing the health insurance, assuming that the employer's marginal tax rate is 21 percent and is profitable?

Option 1: $0.
Option 2: $1,470.
Option 3: $5,530.
Option 4: $7,000.

Reference no: EM132990349

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