Question

Low Med offers to

prescription drug insurance plans. With plan 1,
James would pay the first $150 of his preseription
costs and 30% of all costs after that. With plan 2
James would pay the first $280 of costs, but only
10% of the rest. For what amount of prescription
costs will plan 2 save James money? (Assume that
his prescription costs exceed $280)

Answer 1

$ 650

Explanation:

Plan 1: y=0.3x + 150

Plan 2: y=0.1x + 280

O.3x + 150 > 0.1x + 280

0.3x - 0.1x > 280-150

0.2x > 130

x > 130/0.2

x > 650