Opal West has made a claim for an injury of a visiting ten-year-old who broke a toe in the family swimming pool. She carries a home insurance plan with a $500 deductible for physical damages and an $800 deductible for accidental injury.

Question

The entire medical bill was $1,785.42, plus 6.635% tax. How much of the bill was covered by the insurance policy?

(1 point)
Responses

$500

$500

$800

$800

$1,103.88

$1,103.88

$1,403.88

Answer 1

To determine how much of the bill was covered by the insurance policy, we first need to calculate the total medical bill including the tax.

1. Calculate the tax on the medical bill: \[ \text{Tax} = \text{Medical bill} \times \text{Tax rate} = 1,785.42 \times 0.06635 = 118.94 \text{ (approximately)} \]

2. Calculate the total bill including tax: \[ \text{Total bill} = \text{Medical bill} + \text{Tax} = 1,785.42 + 118.94 \approx 1,904.36 \]

Now we need to consider the insurance deductibles:

1. Accidental injury deductible applies since it’s an injury:

   • The accident deductible is $800.

2. Determine how much of the total bill qualifies for insurance coverage after applying the deductible: \[ \text{Amount eligible for coverage} = \text{Total bill} - \text{Accidental injury deductible} \] \[ = 1,904.36 - 800 = 1,104.36 \]

Since insurance will cover the amount above the deductible:

3. Insurance will cover at least this much:
   • The deductible is applied first, and therefore the insurance will cover the total bill minus this deductible amount.

So, the amount covered by the insurance policy is: \[ \text{Insurance coverage} \approx 1,104.36 \]

However, since the responses are given as specific numbers, and if we compare them:

• The closest answer to our calculated coverage of approximately $1,104.36 is $1,103.88.

Thus, the amount of the bill covered by the insurance policy is: \[ \boxed{1,103.88} \]