BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem

medical expenses thereafter

This topic has expert replies
Post new topic Post Reply
Previous Topic Next Topic
User avatar
GMAT Instructor
Posts: 3650
Joined: Wed Jan 21, 2009 4:27 am
Location: India
Thanked: 267 times
Followed by:80 members
GMAT Score:760

medical expenses thereafter

by sanju09 » Mon Apr 12, 2010 3:58 am
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
The mind is everything. What you think you become. -Lord Buddha



Sanjeev K Saxena
Quantitative Instructor
The Princeton Review - Manya Abroad
Lucknow-226001

www.manyagroup.com
Top
Source: — Problem Solving |
User avatar
Legendary Member
Posts: 1560
Joined: Tue Nov 17, 2009 2:38 am
Thanked: 137 times
Followed by:5 members

by thephoenix » Mon Apr 12, 2010 4:06 am
IMO A

for an expense of $1000 the family gets $800 back by the insurance and
since the family pays an amnt of $800
so bth are equal
Top
Legendary Member
Posts: 576
Joined: Sat Mar 13, 2010 8:31 pm
Thanked: 97 times
Followed by:1 members

by liferocks » Mon Apr 12, 2010 4:45 am
IMO its option B=$1200

because in first $1000 family pays $200+initial $800 ie total $1000 and company $800
so in first $1000 family pays $200 more than the company
so expense has to be $200 more than $1000 to break even
hence ans is $1200
Top
Master | Next Rank: 500 Posts
Posts: 148
Joined: Tue Jun 09, 2009 11:06 pm
Thanked: 7 times

by pops » Mon Apr 12, 2010 11:45 pm
liferocks wrote:IMO its option B=$1200

because in first $1000 family pays $200+initial $800 ie total $1000 and company $800
so in first $1000 family pays $200 more than the company
so expense has to be $200 more than $1000 to break even
hence ans is $1200
Ans. should be B
because family's total medical expense would be: $800 (payment for insurance) and $200 (out of first $1000 family is getting $800 only) = $1000
now lets family's medical expense be x
for first 1000 family gets 800, for next x-1000 family gets 100% i.e. x-1000
hence, amount paid by plan = 800 + x -1000 = x - 200

so, x-200 = 1000
x=1200
Top
User avatar
Legendary Member
Posts: 748
Joined: Sun Jan 31, 2010 7:54 am
Thanked: 46 times
Followed by:3 members

by outreach » Mon Apr 12, 2010 11:54 pm
sanju09 wrote: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
B
For expense of $1200, the plan pays 1000. -(1)
so in total $200 the family pays -(2)
initially they have paid $800 for the plan-(3)
(2)+(3) = 1000 -(4)

(4) and (1) are same
-------------------------------------
--------------------------------------
General blog
https://amarnaik.wordpress.com
MBA blog
https://amarrnaik.blocked/
Top
Post new topic Post Reply
• Page 1 of 1