Problema Solution
Bayside insurance offers two health plans. Under plan A, Giselle would have to pay the first $100 of her medical bills, plus 35% of the rest. Under plan B, Giselle would pay the first $180, but only 30% of the rest. For what amount of medical bills will plan B save Giselle money?
Answer provided by our tutors
Let's set the equation to see where they're about even:
100 + .25x = 150 + .20 x
Subtract 100 from both sides
.25 x = .20x + 50
Subtract .20x from both sides
.05x = 50
Divide by 0.05
x = 1000
so at the $1000 level,
Giselle pays 100 + 25% (900) = 325 under plan A.
Under plan B she would pay 150 + 20% (850) = 170 = 320
Anything over $1000 is going to save her money, because she'll only be paying 20% (not 25%) of each successive dollar.