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GRE Prep Club Team Member
Joined: 20 Feb 2017
Posts: 2506
Given Kudos: 1055
GPA: 3.39
Under a certain companys medical insurance plan, the amount an employ
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31 Mar 2022, 09:42
31 Mar 2022, 09:42
Expert Reply
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Under a certain company’s medical insurance plan, the amount an employee must pay for medical expenses consists of payment for the first $450 of expenses plus 20 percent of additional expenses, up to a maximum total payment of $1,350 per year. All remaining expenses are paid by the plan. Last year, if an employee paid the maximum amount for medical expenses, what is the least amount that the plan could have paid?
A. $720
B. $1,080
C. $3,600
D. $4,500
E. $4,950
A. $720
B. $1,080
C. $3,600
D. $4,500
E. $4,950
GRE Prep Club Team Member
Joined: 20 Feb 2017
Posts: 2506
Given Kudos: 1055
GPA: 3.39
Re: Under a certain companys medical insurance plan, the amount an employ
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08 Apr 2022, 03:19
08 Apr 2022, 03:19
Expert Reply
Explanation
Here is the algebraic approach:
Let E= Total Expense
If employee pays up to max ($1,350):
$450+20%(E-450)=$1350
20%(E-450)=900
E-450=$4500
E=$4950
Therefore, the total expense would be $4950 before the insurance company pays for 100% of the rest of the expenses. Therefore, up to $4950, the insurance company must pay...
80%(E-450)
=80%(4950-450)
=80%(4500)
=$3,600
The answer is C.
Here is the algebraic approach:
Let E= Total Expense
If employee pays up to max ($1,350):
$450+20%(E-450)=$1350
20%(E-450)=900
E-450=$4500
E=$4950
Therefore, the total expense would be $4950 before the insurance company pays for 100% of the rest of the expenses. Therefore, up to $4950, the insurance company must pay...
80%(E-450)
=80%(4950-450)
=80%(4500)
=$3,600
The answer is C.
gmatclubot
Re: Under a certain companys medical insurance plan, the amount an employ [#permalink]
08 Apr 2022, 03:19
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