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Albebra I

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bayside insurance offers 2 plans: plan A: pay the 1st $60 + 0.30 of the rest of the bills; plan b = pay 1st $140 + 0.25 of the rest of thebills. For what amount of medical bills will plan B save money? Assume there are over $140 in bills

  • Albebra I - ,

    you want B < A, or A > B

    For x dollars in bills,

    A = 60 + .3(x-60)
    B = 140 + .25(x-140)

    60 + .30x - 18 > 140 + .25x - 35
    .05x > 63
    x > 1260

    So, for 1260 in bills,
    plan A you pay 60 + .3*1200 = 420
    plan B you pay 140 + .25*1120 = 420

    above that, each dollar of B costs less than for A.

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