The out-of-pocket costs to an employee for dental insurance and dental expenses for one year are as follows:
Premium, $4000; Deductible, $300; Co-payment, 17% (after the first $300 the employee has to pay). According to the plan outlined, total annual dental care costs, c, depends on the employee's dental expenses for that year. If x represents the total dental expenses of an employee's plan and x (more than or equal to)300, which of the following equations can be used to determine this employee's
total dental car costs for that year?
A: C = 4000 + 300 + .17 (x-300)
B: C = 4000 - 300 + .17 (x-300)
C: C = 4000 - 300 + .17x
D: C = 4000 + 300 + .17x
I chose "D". If that correct? If not, why?
The answer is A
D means that you pay 300 + 17% of everything
But, you only pay 17% of everything after the first 300.
so, cost is premium + deductible + 17% of everything else (x-300)
Thank you so much for explaining it so well.
Yes, your choice of option D is correct.
Let's break down the components of the equation to understand why it represents the correct calculation of the total dental care costs for the year.
C: This represents the total annual dental care costs that the employee will have to pay.
4000: This represents the premium cost, which is the amount the employee must pay for dental insurance coverage for the year.
300: This represents the deductible amount, which is the initial expense the employee has to pay before insurance coverage kicks in.
0.17x: This represents the co-payment amount, which is calculated as 17% of the total dental expenses (x) minus the deductible.
By summing up these three components (premium, deductible, and co-payment), we get the total dental care costs for the year.
Hence, equation D: C = 4000 + 300 + 0.17x is the correct equation to determine the total dental care costs for the year in this scenario.