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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: Intern Joined: 17 May 2007 Posts: 6 Followers: 0 Kudos [?]: 0 [0], given: 0 A family pays$800 per year for an insurance plan that pays [#permalink]  09 Jun 2007, 19:52
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 Rick CEO Joined: 17 May 2007 Posts: 2994 Followers: 59 Kudos [?]: 468 [0], given: 210 [#permalink] 09 Jun 2007, 20:02 The answer is B - 1200 dollars. How much does the family have to pay ? Insurance cost + 200 dollars of the 1st 1000 dollars in expenses = 800 + 200 = 1000 now this is equal to the actual money that insurance pays = 800 of the 1st 1000 + (1000 - x ) {where x is the actual medical expense} 800 + 1000 - x = 1000 x =$1200.
Intern
Joined: 17 May 2007
Posts: 6
Followers: 0

Kudos [?]: 0 [0], given: 0

Quote:
now this is equal to the actual money that insurance pays
= 800 of the 1st 1000 + (1000 - x ) {where x is the actual medical expense}
800 + 1000 - x = 1000
x = $1200. From the equation listed above will you not get 800 as the answer for x? CEO Joined: 17 May 2007 Posts: 2994 Followers: 59 Kudos [?]: 468 [0], given: 210 [#permalink] 09 Jun 2007, 22:01 Whoops minor typo , its actually x-1000 so the correct equation is x-1000 + 800 = 1000 x is 1200 (my notebook had the correct equation thankfully ) What is the OA ? [#permalink] 09 Jun 2007, 22:01 Similar topics Replies Last post Similar Topics: 2 A basic savings account pays interest once per year on Decem 3 27 Aug 2013, 23:57 1 Health insurance Plan A requires the insured to pay$1000 or 2 18 Jul 2011, 03:45
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