Question

Jason's insurance company pays 80% of the cost of an ambulance ride, after he pays a $200 deductible. The ambulance ride costs $1200. How much would Jason pay for an ambulance ride?

A. $200B. $240C. $400D. $440

Answer 1

400

Explanation:

Answer 2

Jason's insurance pays 80% of the cost after he pays a $200 deductible. The deductible is Jason's responsibility. The insurance does not pay this and calculates the 80% AFTER it is subtracted from the total cost.

That's 1200 - 200 = 1000.

The insurance pays 80% of 1000. Percent means "out of 100" (per means "for every" and "cent" means 100 --> think CENTury...100 years). So 80% means 80 out of 100. That is,
`(80)/(100)`. To find 80% of 1000 we multiply:
`((80)/(100))( 1000) = (80000)/(100)=800`

If decimals are more your thing then represent 80% as .80 and multiply (1000)(.80) = 800.

Now, that's what the insurance pays. So out of that $1,000 the insurance pays $800 leaving Jason with a bill of $200 plus the deductible (another $200). That means Jason pays $400.