Bayside insurance offers two health plans. Under plan A, Giselle would have to pay the first $60 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 mediacl bills will plan B save Giselle money? Assume she has over $250
PlanA costs=PlanB costs
60+.25(Total-60)=250+.2(Total-250)
solve for total.
To determine the amount of medical bills for which plan B will save Giselle money, we can set up an equation to compare the costs of the two plans.
Let's denote the amount of medical bills as "x".
Under plan A:
Giselle pays the first $60 plus 25% of the rest, which can be calculated as:
60 + 0.25(x - 60) = 60 + 0.25x - 15 = 0.25x + 45.
Under plan B:
Giselle pays the first $250 plus 20% of the rest, which can be calculated as:
250 + 0.20(x - 250) = 250 + 0.20x - 50 = 0.20x + 200.
To find the point at which plan B will save Giselle money, we need to set up an inequality:
0.20x + 200 < 0.25x + 45
Now, we can solve this inequality to find the value of "x" for which plan B will save Giselle money.
0.20x - 0.25x < 45 - 200
-0.05x < -155
Dividing both sides by -0.05 (and flipping the inequality due to dividing by a negative number), we get:
x > -155 / -0.05
x > 3100
Therefore, plan B will save Giselle money for any amount of medical bills greater than $3100.