Bills gross pay per week is $1,000, and every week he purchases $100 worth of health insurance. Assume Bill’s marginal tax rate is 25%.

Bills gross pay per week is $1,000, and every week he purchases $100 worth of health insurance. Assume Bill’s marginal tax rate is 25%. If Bill’s health insurance were purchased through work, his net pay (take-home less insurance) would change from _____ to ___.

Select one:

a. $700; $675.

b. $400; $405.

c. $550; $600

d. $650; $675.