Last year the annual premium on a certain hospitalization insurance

Question

Last year the annual premium on a certain hospitalization insurance policy was $408, and the policy paid 80 percent of any hospital expenses incurred. If the amount paid by the insurance policy last year was equal to the annual premium plus the amount of hospital expenses not paid by the policy, what was the total amount of hospital expenses last year?

Lets take hospital expenses as X
0.8x=408+0.2x
x=680

Hence option B is correct

(A) $850.00
(B) $680.00
(C) $640.00
(D) $510.00
(E) $326.40

Nidzo · Answer

Last year the annual premium on a certain hospitalization insurance policy was $408, and the policy paid 80 percent of any hospital expenses incurred. If the amount paid by the insurance policy last year was equal to the annual premium plus the amount of hospital expenses not paid by the policy, what was the total amount of hospital expenses last year?

Lets take hospital expenses as X
0.8x=408+0.2x
x=680

Hence option B is correct

(A) $850.00
(B) $680.00
(C) $640.00
(D) $510.00
(E) $326.40

"the amount paid by the insurance policy last year was equal to the annual premium plus the amount of hospital expenses not paid by the policy"  written as an equation:   80% of the expenses = 408 + 20% of the expenses
  
Let the total expenses =  x

\frac{8}{10}x = 408 + \frac{2}{10}x

\frac{6}{10}x = 408

6x = 4080

x = 680

Answer B

anu12345678765 · Answer

This is very touugh to understand. It is confusing me a lot. 
please help

RaghavRT · Answer

I'm finding the wording of this question very tough to understand.

Mislead · Answer

Break down each phrase if the word problem seems overwhelming:
  the amount paid by the insurance policy last year was equal to the annual premium: This means the insurance policy paid equal to the premimum amount which is $408 
 "Plus" : + 
 the amount of hospital expenses not paid by the policy: We are given in the question that the insurance policy pay 80% of the expenses incurred which means this is 20% of the expenses
 
(1)Adding all this together is how much the insurance policy paid: 408 + 20% of the expenses
(2)Additionally, we were also told that the insurance policy paid 80% of the expenses incurred

Therefore both the statment must be equal and equating them together will give the ans

ravi1522 · Answer

Last year the annual premium on a certain hospitalization insurance policy was $408, and the policy paid 80 percent of any hospital expenses incurred. If the amount paid by the insurance policy last year was equal to the annual premium plus the amount of hospital expenses not paid by the policy, what was the total amount of hospital expenses last year?

Lets take hospital expenses as X
0.8x=408+0.2x
x=680

Hence option B is correct

Lets take hospital expenses as X
0.8x=408+0.2x
x=680

Hence option B is correct

anu12345678765 · Answer

The  policy paid 80 percent of any hospital expenses incurred. 
Till here it is clear.

'The amount paid by the insurance policy last year was equal to the annual premium plus the amount of hospital expenses not paid by the policy.' 
According to me this line means that the policy paid 80% of the total expense. 
If the the 20% was not paid by the policy this means 408 was the total amount paid by the policy for the bill.
amount paid by policy = Annual premiun + 20% of the bill.  
 
 This is where it is confusing me.

Bunuel · Answer

Let total expenses be x.

Policy paid 80% = 0.8x.

Sentence says: amount paid by the policy = premium + unpaid part, so 0.8x = 408 + 0.2x, which gives x = 680.

The confusion was thinking 408 itself was the amount paid; it’s part of the right side, not the left.

Last year the annual premium on a certain hospitalization insurance

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Last year the annual premium on a certain hospitalization insurance

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