Anaira Mitch wrote: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.

We are given that the original bill was $230, and we need to determine the percentage discount applied to that original bill.

Statement One Alone:

The insurance company is required to pay only 20 percent of the original bill for the test.

Since the insurance company pays 20 percent of the original bill, the percentage discount given to the insurance company is 100 - 20 = 80 percent. Statement one alone is sufficient to answer the question.

Statement Two Alone:

The insurance company is required to pay $46 for the test.

Since the insurance company paid $46 for the test and the original bill was $230, the insurance company paid 46/230 = 2/10 or 20% of the original bill. Thus, the percentage discount given to the insurance company is 80 percent. Statement two alone is also sufficient to answer the question.

Answer: D