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09 Jun 2007, 20:52
Kudos
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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
Rick
A. $1,000
B. $1,200
C. $1,400
D. $1,800
E. $2,200
Rick
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09 Jun 2007, 21:02
Kudos
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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.
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.
09 Jun 2007, 21:12
Kudos
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Quote:
From the equation listed above will you not get 800 as the answer for x?
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