An insurance company has a contract with a medical laboratory to pay a discounted price for a certain medical test

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An insurance company has a contract with a medical laboratory to pay a discounted price for a certain medical test performed on patients referred to the laboratory by the insurance company. If the laboratory's original bill for this medical test on a patient referred by the insurance company is $230, what is the percent discount specified by the contract between the laboratory and the insurance company?

1) The insurance company is required to pay only 20 percent of the original bill for the test
2) The insurance company is required to pay $46 for the test

OA D

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Wed Jul 28, 2021 3:17 am
GMAT Prep

An insurance company has a contract with a medical laboratory to pay a discounted price for a certain medical test performed on patients referred to the laboratory by the insurance company. If the laboratory's original bill for this medical test on a patient referred by the insurance company is $230, what is the percent discount specified by the contract between the laboratory and the insurance company?

1) The insurance company is required to pay only 20 percent of the original bill for the test
2) The insurance company is required to pay $46 for the test

OA D
From 1) Company pays \(20\%.\) This implies company enjoys \(80\%\) discount. Sufficient \(\Large{\color{green}\checkmark}\)

From 2) Company pays \(\$46.\) Discount\(=\dfrac{230-46}{230}\ast 100\). Sufficient \(\Large{\color{green}\checkmark}\)

Therefore, D