Bayside Insurance offers two health plans. Under plan A, giselle would have to pay the first $190.00 of her medical bills, plus 25% of the rest. Under plan B, Giselle would pay the first $250, but only 20% of the rest. For what amount of meidcal bills will plan B save Giselle Money? Assume she has over 250 in bills. thank you in advance
solve for x, the amount of her bills
.25x + 190 = .2x + 250
To determine the amount of medical bills for which plan B will save Giselle money, we need to set up an equation and solve it.
Let's assume the amount of medical bills is x (x > 250).
Under plan A, Giselle would pay the first $190 plus 25% of the rest, so her total payment would be:
190 + 0.25(x - 190)
Under plan B, Giselle would pay the first $250 plus 20% of the rest, so her total payment would be:
250 + 0.20(x - 250)
Now, we need to find the amount of medical bills (x) for which plan B will save Giselle money. This means that the total payment under plan B should be less than the total payment under plan A.
So, we set up the following equation:
250 + 0.20(x - 250) < 190 + 0.25(x - 190)
Let's solve this equation to find the range of medical bills where plan B will save Giselle money.
250 + 0.20x - 50 < 190 + 0.25x - 47.5
200 + 0.20x < 190 + 0.25x - 47.5
0.20x - 0.25x < 190 - 47.5 - 200
-0.05x < -57.5
Divide both sides by -0.05 (Note: When dividing by a negative number, the inequality sign flips):
x > (-57.5) / (-0.05)
x > 1150
Therefore, for any amount of medical bills greater than $1150, plan B will save Giselle money when compared to plan A.