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# A family pays $800 per year for an insurance plan that pays  Question banks Downloads My Bookmarks Reviews Important topics Author Message TAGS: VP Joined: 08 Jun 2005 Posts: 1146 Followers: 6 Kudos [?]: 136 [0], given: 0 A family pays$800 per year for an insurance plan that pays [#permalink]  23 May 2007, 00:59
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A family pays $800 per year for an insurance plan that pays 80 percent of the first$1,000 in expenses and 100 percent of all medical expenses thereafter. In any given year, the total amount paid by the family will equal the amount paid by the plan when the family's medical expenses total:

A. $1,000 B.$1,200
C. $1,400 D.$1,800
E. $2,200 Director Joined: 18 Jul 2006 Posts: 531 Followers: 1 Kudos [?]: 31 [0], given: 0 [#permalink] 23 May 2007, 01:41 Money paid by family = Money paid by insurer. 1000*.2+(X-1000)*0 + 800 = 1000*.8 + (X -1000) => X = 1200 so B? P.S. Here, actual money paid by insurer is 1200 - 800 (received feom family as copay) = 400. If we take$800 into consideration, answer should be $2000, but this is not an answer option. Manager Joined: 14 Mar 2007 Posts: 96 Followers: 1 Kudos [?]: 9 [0], given: 0 [#permalink] 23 May 2007, 01:56 B. 1200 Let the sum be x Insurance comapny will pay: 0.8*1000 + (x-1000) Family will pay: 800(towards insurance) + 200(remaining from the first 1000 which insurance does not cover) So 0.8*1000 + (x-1000) = 800 + 200 800 + x-1000 = 1000 x=1200 Manager Joined: 22 May 2007 Posts: 115 Followers: 1 Kudos [?]: 2 [0], given: 0 [#permalink] 23 May 2007, 02:06 I get the same equation, answer B is the correct one VP Joined: 08 Jun 2005 Posts: 1146 Followers: 6 Kudos [?]: 136 [0], given: 0 [#permalink] 23 May 2007, 02:07 the OA is (B) - good work & good explanations ! Manager Joined: 13 Feb 2007 Posts: 63 Followers: 1 Kudos [?]: 1 [0], given: 0 Good job Juaz [#permalink] 23 May 2007, 23:53 Juaz, that was a good catch on the (x - 1000) part of the equation. I understand after looking at your answer that the first thousand is subtracted from the total because it has already been distributed proportionately and accounted for elsewhere in the equation. Good Job! Good job Juaz [#permalink] 23 May 2007, 23:53 Similar topics Replies Last post Similar Topics: 8 Ken left a job paying$75,000 per year to accept a sales job 6 23 Mar 2012, 21:42
1 Health insurance Plan A requires the insured to pay $1000 or 2 18 Jul 2011, 03:45 22 Health insurance Plan A requires the insured to pay$1000 or 9 17 Dec 2010, 07:33
ken left a job paying $75,000 per year to accept a sales job 3 10 Jul 2007, 15:33 Q. Ken left a job paying$75,000 per year to accept a sales 2 31 Jan 2007, 09:21
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# A family pays \$800 per year for an insurance plan that pays

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