Question

Atrap and Bracken are two rival insurance companies. Atrap and Bracken have premiums of $150 and $100 and deductibles of $2,500 and $3,500 respectively. The average expense of surgery is $25,000. For Bracken to break even (suffer no loss and earn no profit) over the passage of 3 years, about how many people among the 1,000 insured people can file a claim for a surgical procedure?

a -10
b- 14
c- 16
d- 17
e- 20

Answer 1

900

Explanation:

just took test

Answer 2

First of all, multiply the amount of people by the premious of 100$. Then multiply the result by 3 years (12*3) :

1) 1000x100x12x3 = 3,600,000
Then subtract average expense of surgery from deductibles 3500

25,000-3,500= 21,500
Then divide result1 by result 2
3,600,000/21,500

And the answer is 167 procedures over 3 years.