bayside insurance offers 2 plans: plan A: pay the 1st $60 + 0.30 of the rest of the bills; plan b = pay 1st $140 + 0.25 of the rest of thebills. For what amount of medical bills will plan B save money? Assume there are over $140 in bills

Answer 1

you want B < A, or A > B

For x dollars in bills,

A = 60 + .3(x-60)
B = 140 + .25(x-140)

60 + .30x - 18 > 140 + .25x - 35
.05x > 63
x > 1260

So, for 1260 in bills,
plan A you pay 60 + .3*1200 = 420
plan B you pay 140 + .25*1120 = 420

above that, each dollar of B costs less than for A.