It is currently 12 Dec 2017, 17:56

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Health insurance Plan A requires the insured to pay $1000 or

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

5 KUDOS received
Manager
Manager
avatar
Joined: 07 Feb 2010
Posts: 155

Kudos [?]: 777 [5], given: 101

Health insurance Plan A requires the insured to pay $1000 or [#permalink]

Show Tags

New post 17 Dec 2010, 07:33
5
This post received
KUDOS
30
This post was
BOOKMARKED
00:00
A
B
C
D
E

Difficulty:

  85% (hard)

Question Stats:

54% (01:25) correct 46% (01:45) wrong based on 631 sessions

HideShow timer Statistics

Health insurance Plan A requires the insured to pay $1000 or 50% of total cost, whichever is lower. Plan B requires the insured to pay the initial $300, but then pays 80% of the cost over $300. Which of the following is a cost level for which both insurance plans pay out the same amount?

A. $600
B. $1000
C. $3800
D. $5300
E. $6200
[Reveal] Spoiler: OA

Kudos [?]: 777 [5], given: 101

Expert Post
11 KUDOS received
Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 42571

Kudos [?]: 135395 [11], given: 12691

Re: Health insurance Plan [#permalink]

Show Tags

New post 17 Dec 2010, 08:04
11
This post received
KUDOS
Expert's post
11
This post was
BOOKMARKED
anilnandyala wrote:
Health insurance Plan A requires the insured to pay $1000 or 50% of total cost, whichever is lower. Plan B requires the insured to pay the initial $300, but then pays 80% of the cost over $300. Which of the following is a cost level for which both insurance plans pay out the same amount?

$600
$1000
$3800
$5300
$6200


Pay out for plan A: Cost-$1,000 or Cost-0.5*Cost=0.5*Cost, when 0.5*Cost<$1,000;
Pay out for plan B: 0.8(Cost-$300);

The question is: for which of the following costs the pay outs are the same.

C-1,000=0.8(C-300) --> for C=3,800 and 0.5C=0.8(C-300) --> for C=800. As we have only $3,800 listed then it must be a correct answer.

Or you can use backsolving for this question:
A. C=$600: pay out for plan A will be 0.5*600=300 (as 0.5*600<1,000) and pay out for plan B will be 0.8*(600-300)=240;

B. C=$1000: pay out for plan A will be 0.5*1,00=500 (as 0.5*1,000<1,000) and pay out for plan B will be 0.8*(1,000-300)=560;

C. C=$3800: pay out for plan A will be 3,800-1,000=2,800 (as 0.5*3,800>1,000) and pay out for plan B will be 0.8*(3,800-300)=2,800 --> 2,800=2,800;

D. C=$5300: pay out for plan A will be 5,300-1,000=4,300 (as 0.5*5,300>1,000) and pay out for plan B will be 0.8*(5,300-300)=4,000;

E. C=$6200:pay out for plan A will be 6,200-1,000=5,200 (as 0.5*6,200>1,000) and pay out for plan B will be 0.8*(6,200-300)=4,720.

Answer: C.

Hope it's clear.
_________________

New to the Math Forum?
Please read this: Ultimate GMAT Quantitative Megathread | All You Need for Quant | PLEASE READ AND FOLLOW: 12 Rules for Posting!!!

Resources:
GMAT Math Book | Triangles | Polygons | Coordinate Geometry | Factorials | Circles | Number Theory | Remainders; 8. Overlapping Sets | PDF of Math Book; 10. Remainders | GMAT Prep Software Analysis | SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS) | Tricky questions from previous years.

Collection of Questions:
PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat

DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.


What are GMAT Club Tests?
Extra-hard Quant Tests with Brilliant Analytics

Kudos [?]: 135395 [11], given: 12691

Intern
Intern
avatar
Status: Happy
Joined: 17 Jan 2011
Posts: 4

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

Location: USA
Re: Health insurance Plan [#permalink]

Show Tags

New post 18 Jan 2011, 22:12
Well i think the Ans would be C because i use the same method as the other member showed you above and i don't think there is another way of finding that pay out plan... :)
_________________

Any sufficiently advanced technology is indistinguishable from magic.

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

Director
Director
avatar
Joined: 28 Jul 2011
Posts: 516

Kudos [?]: 312 [0], given: 16

Location: United States
Concentration: International Business, General Management
GPA: 3.86
WE: Accounting (Commercial Banking)
Re: Health insurance Plan A requires the insured to pay $1000 or [#permalink]

Show Tags

New post 22 May 2012, 18:54
Hi Bunnel.

According to me the 2 equations are:
0.8(C – 300) + 300= 1000 OR 0.8(C – 300) + 300= 0.5C

But i am confused with the question you formed the two equations

C-1,000=0.8(C-300)--->1^st and 0.5C=0.8(C-300)

Since the questions says if the cost is above 1000 he will pay which ever is lower, but according to your 1st equation he is paying more that 1000 i.e is 2800, please clarify if i am wrong, awaiting for your reply
_________________

+1 Kudos If found helpful..

Kudos [?]: 312 [0], given: 16

5 KUDOS received
Current Student
avatar
Joined: 21 May 2012
Posts: 97

Kudos [?]: 42 [5], given: 0

Location: United States (CA)
Reviews Badge
Re: Health insurance Plan A requires the insured to pay $1000 or [#permalink]

Show Tags

New post 22 May 2012, 19:37
5
This post received
KUDOS
kotela wrote:
Hi Bunnel.

According to me the 2 equations are:
0.8(C – 300) + 300= 1000 OR 0.8(C – 300) + 300= 0.5C

But i am confused with the question you formed the two equations

C-1,000=0.8(C-300)--->1^st and 0.5C=0.8(C-300)

Since the questions says if the cost is above 1000 he will pay which ever is lower, but according to your 1st equation he is paying more that 1000 i.e is 2800, please clarify if i am wrong, awaiting for your reply


You are reading the question wrong. It is asking when the insurance company will pay the same amount of money not the insured.

0.8(C–300) = C–1000
OR
0.8(C–300) = 0.5C

Solving the first equation gives us C=3800
Solving the second equation gives us C=800

Since 800 isn't one of the answers we can eliminate it and 3800 is the only possible answer.

The correct answer is C.

Kudos [?]: 42 [5], given: 0

Director
Director
avatar
Joined: 28 Jul 2011
Posts: 516

Kudos [?]: 312 [0], given: 16

Location: United States
Concentration: International Business, General Management
GPA: 3.86
WE: Accounting (Commercial Banking)
Re: Health insurance Plan A requires the insured to pay $1000 or [#permalink]

Show Tags

New post 22 May 2012, 21:19
Cares wrote:
kotela wrote:
Hi Bunnel.

According to me the 2 equations are:
0.8(C – 300) + 300= 1000 OR 0.8(C – 300) + 300= 0.5C

But i am confused with the question you formed the two equations

C-1,000=0.8(C-300)--->1^st and 0.5C=0.8(C-300)

Since the questions says if the cost is above 1000 he will pay which ever is lower, but according to your 1st equation he is paying more that 1000 i.e is 2800, please clarify if i am wrong, awaiting for your reply


You are reading the question wrong. It is asking when the insurance company will pay the same amount of money not the insured.

0.8(C–300) = C–1000
OR
0.8(C–300) = 0.5C

Solving the first equation gives us C=3800
Solving the second equation gives us C=800

Since 800 isn't one of the answers we can eliminate it and 3800 is the only possible answer.

The correct answer is C.


Ya you are i misread the question....thanks for that and +1 kudos for you
_________________

+1 Kudos If found helpful..

Kudos [?]: 312 [0], given: 16

2 KUDOS received
Senior Manager
Senior Manager
User avatar
Joined: 13 Aug 2012
Posts: 457

Kudos [?]: 569 [2], given: 11

Concentration: Marketing, Finance
GPA: 3.23
GMAT ToolKit User
Re: Health insurance Plan A requires the insured to pay $1000 or [#permalink]

Show Tags

New post 01 Dec 2012, 21:37
2
This post received
KUDOS
Insured pays out:
Plan A==>\(1000\) or \(C/2\)
Plan B==>\(300\)

Insurance pays out:
Plan A==>\(C-1000\) or \(C/2\)
Plan B==>\(.8(C-300)\)

We are concerned with the payout made by Insurance.

\(C-1000=.8(C-300)\)
\(C=1000+.8C-240\)
\(.2C=760\)
\(C=3800\)

Answer:3800
_________________

Impossible is nothing to God.

Kudos [?]: 569 [2], given: 11

Non-Human User
User avatar
Joined: 09 Sep 2013
Posts: 14897

Kudos [?]: 287 [0], given: 0

Premium Member
Re: Health insurance Plan A requires the insured to pay $1000 or [#permalink]

Show Tags

New post 03 Dec 2013, 06:50
Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
_________________

GMAT Books | GMAT Club Tests | Best Prices on GMAT Courses | GMAT Mobile App | Math Resources | Verbal Resources

Kudos [?]: 287 [0], given: 0

Senior Manager
Senior Manager
User avatar
Joined: 10 Mar 2013
Posts: 266

Kudos [?]: 128 [0], given: 2405

GMAT 1: 620 Q44 V31
GMAT 2: 690 Q47 V37
GMAT 3: 610 Q47 V28
GMAT 4: 700 Q50 V34
GMAT 5: 700 Q49 V36
GMAT 6: 690 Q48 V35
GMAT 7: 750 Q49 V42
GMAT 8: 730 Q50 V39
Re: Health insurance Plan A requires the insured to pay $1000 or [#permalink]

Show Tags

New post 10 Aug 2014, 18:08
Algebra is truly a loser in this question. Backsolving is the fastest and most effective method here.

Kudos [?]: 128 [0], given: 2405

Manager
Manager
avatar
Joined: 20 Jul 2013
Posts: 61

Kudos [?]: 66 [0], given: 57

Re: Health insurance Plan A requires the insured to pay $1000 or [#permalink]

Show Tags

New post 22 Mar 2015, 04:33
TooLong150 wrote:
Algebra is truly a loser in this question. Backsolving is the fastest and most effective method here.


Having to rely on backsolving is truly hit or miss when it comes to timing.

If you've mastered algebra, not only can you virtually solve most of the problems on the test, but this problem can also be completed around 30 seconds. Seems like a pretty fast time to me :)

Kudos [?]: 66 [0], given: 57

Expert Post
1 KUDOS received
SVP
SVP
User avatar
G
Joined: 08 Jul 2010
Posts: 1857

Kudos [?]: 2399 [1], given: 51

Location: India
GMAT: INSIGHT
WE: Education (Education)
Reviews Badge
Re: Health insurance Plan A requires the insured to pay $1000 or [#permalink]

Show Tags

New post 28 Oct 2015, 08:21
1
This post received
KUDOS
Expert's post
anilnandyala wrote:
Health insurance Plan A requires the insured to pay $1000 or 50% of total cost, whichever is lower. Plan B requires the insured to pay the initial $300, but then pays 80% of the cost over $300. Which of the following is a cost level for which both insurance plans pay out the same amount?

A. $600
B. $1000
C. $3800
D. $5300
E. $6200


Case 1: What Insured pay is
1000 (as per plan A) = 300+(20/100)*(C-300)
Solving this equation, C = 3800

Case 2: What Insured pay is
(50/100)*C (as per plan A) = 300+(20/100)*(C-300)
Solving this equation, C = 800

Answer: Option C
_________________

Prosper!!!
GMATinsight
Bhoopendra Singh and Dr.Sushma Jha
e-mail: info@GMATinsight.com I Call us : +91-9999687183 / 9891333772
Online One-on-One Skype based classes and Classroom Coaching in South and West Delhi
http://www.GMATinsight.com/testimonials.html

22 ONLINE FREE (FULL LENGTH) GMAT CAT (PRACTICE TESTS) LINK COLLECTION

Kudos [?]: 2399 [1], given: 51

Current Student
User avatar
Joined: 12 Aug 2015
Posts: 298

Kudos [?]: 594 [0], given: 1474

Concentration: General Management, Operations
GMAT 1: 640 Q40 V37
GMAT 2: 650 Q43 V36
GMAT 3: 600 Q47 V27
GPA: 3.3
WE: Management Consulting (Consulting)
Health insurance Plan A requires the insured to pay $1000 or [#permalink]

Show Tags

New post 20 Nov 2015, 10:56
"Health insurance Plan A requires the insured to pay $1000 or 50% of total cost, whichever is lower." - this confused me much. if i quoted the fee in my job this way i would be fired =)

my clients would understand this without doubt: if the cost is 10 000 then the client has to pay only 1000 =))) yuuuupi
_________________

KUDO me plenty

Kudos [?]: 594 [0], given: 1474

Intern
Intern
User avatar
Joined: 29 Dec 2014
Posts: 25

Kudos [?]: 15 [0], given: 8

Concentration: Operations, Strategy
GMAT 1: 690 Q48 V35
GMAT 2: 710 Q48 V39
GMAT ToolKit User
Re: Health insurance Plan A requires the insured to pay $1000 or [#permalink]

Show Tags

New post 19 Jan 2016, 11:25
Absolutely agree...pathetic and horridly ambiguous wording....sch kind of wording never appears on gmat...pooh to Manhattan! The stmnt makes it seem as if we HV to choose whether 1000 bucks or C/2 is the payout, C being insurance cost...will sue GMAT if such poorly worded question appears.

Kudos [?]: 15 [0], given: 8

Intern
Intern
avatar
Joined: 10 Oct 2014
Posts: 1

Kudos [?]: 5 [0], given: 0

Location: United States
Apu: Mridha
Re: Health insurance Plan A requires the insured to pay $1000 or [#permalink]

Show Tags

New post 06 Sep 2016, 14:01
Definitely C ! .. According to my calculations, C should be the answer. Please let me know if it's right. :)

Kudos [?]: 5 [0], given: 0

Manager
Manager
User avatar
B
Status: Profile 1
Joined: 20 Sep 2015
Posts: 77

Kudos [?]: 17 [0], given: 40

GMAT 1: 690 Q48 V37
GPA: 3.2
WE: Information Technology (Investment Banking)
GMAT ToolKit User
Re: Health insurance Plan A requires the insured to pay $1000 or [#permalink]

Show Tags

New post 30 Jul 2017, 06:49
anilnandyala wrote:
Health insurance Plan A requires the insured to pay $1000 or 50% of total cost, whichever is lower. Plan B requires the insured to pay the initial $300, but then pays 80% of the cost over $300. Which of the following is a cost level for which both insurance plans pay out the same amount?

A. $600
B. $1000
C. $3800
D. $5300
E. $6200



Out of line .... this question is more of an SC question where you need to look at part "Plan B requires the insured to pay the initial $300, but then pays 80% of the cost over $300" where 'but then pays 80%' is mentioned for insurance company... otherwise this question would be some 600 level.

Kudos [?]: 17 [0], given: 40

Re: Health insurance Plan A requires the insured to pay $1000 or   [#permalink] 30 Jul 2017, 06:49
Display posts from previous: Sort by

Health insurance Plan A requires the insured to pay $1000 or

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.