Help with this word problem please! Bayside Insurance offers two health plan A, Giselle would have to pay the first $80.00 of her medical bills, plus 25% of the rest. Under plan B, Giselle would pay the first $90.00 but only 20% of the rest. For what amount of medical bills will plan B save Giselle money? Assume she has over $110 in bills. Giselle would save with plan B if she had more than $? in bills. (Round to the nearest whole number) Thank you!!!
To solve this word problem, we need to compare the costs of plan A and plan B for Giselle's medical bills.
Let's start by determining the cost of plan A. Giselle would have to pay the first $80.00 of her medical bills, plus 25% of the rest.
To calculate the cost of plan A, we can use the following formula:
Cost of plan A = $80 + 0.25(Rest of the medical bills)
Now, let's determine the cost of plan B. Giselle would pay the first $90.00 but only 20% of the rest.
To calculate the cost of plan B, we can use the following formula:
Cost of plan B = $90 + 0.20(Rest of the medical bills)
To find the amount of medical bills at which plan B saves Giselle money, we need to set the two costs equal to each other and solve for the rest of the medical bills.
Cost of plan A = Cost of plan B
$80 + 0.25(Rest of the medical bills) = $90 + 0.20(Rest of the medical bills)
Simplifying the equation:
0.25(Rest of the medical bills) - 0.20(Rest of the medical bills) = $90 - $80
0.05(Rest of the medical bills) = $10
Now, let's solve for the Rest of the medical bills:
Rest of the medical bills = $10 / 0.05
Calculating the value:
Rest of the medical bills = $200
Therefore, Giselle would save with plan B if she had more than $200 in medical bills.