Last year the annual premium on a
certain hospitalization insurance
policy was $408, and the policy paid
80 percent of any hospital expenses
incurred. If the amount paid by the
insurance policy last year was equal to
the annual premium plus the amount
of hospital expenses not paid by the
policy, what was the total amount of
hospital expenses last year?
(A) $850.00
(B) $680.00
(C) $640.00
(D) $510.00
(E) $326.40
OA is B
insurance
This topic has expert replies
GMAT/MBA Expert
- Anurag@Gurome
- GMAT Instructor
- Posts: 3835
- Joined: Fri Apr 02, 2010 10:00 pm
- Location: Milpitas, CA
- Thanked: 1854 times
- Followed by:523 members
- GMAT Score:770
Let us assume that total hospital expenses = Tgrandh01 wrote:Last year the annual premium on a
certain hospitalization insurance
policy was $408, and the policy paid
80 percent of any hospital expenses
incurred. If the amount paid by the
insurance policy last year was equal to
the annual premium plus the amount
of hospital expenses not paid by the
policy, what was the total amount of
hospital expenses last year?
(A) $850.00
(B) $680.00
(C) $640.00
(D) $510.00
(E) $326.40
OA is B
Then amount paid = premium + amount not paid
80% of T = $408 + 20% of T
0.80T = 408 + 0.20T
0.60T = 408
T = $680
So, total hospital expenses = $680
The correct answer is B.
Anurag Mairal, Ph.D., MBA
GMAT Expert, Admissions and Career Guidance
Gurome, Inc.
1-800-566-4043 (USA)
Join Our Facebook Groups
GMAT with Gurome
https://www.facebook.com/groups/272466352793633/
Admissions with Gurome
https://www.facebook.com/groups/461459690536574/
Career Advising with Gurome
https://www.facebook.com/groups/360435787349781/
GMAT Expert, Admissions and Career Guidance
Gurome, Inc.
1-800-566-4043 (USA)
Join Our Facebook Groups
GMAT with Gurome
https://www.facebook.com/groups/272466352793633/
Admissions with Gurome
https://www.facebook.com/groups/461459690536574/
Career Advising with Gurome
https://www.facebook.com/groups/360435787349781/
-
- Master | Next Rank: 500 Posts
- Posts: 392
- Joined: Thu Jan 15, 2009 12:52 pm
- Location: New Jersey
- Thanked: 76 times
Let x be the total amount of hospital expenses last year.
Amt. paid by insurance policy last year = 408 + 0.20(x) = 0.8(x)
408 = 0.6(x) => x = 408(5/3) = $680
Choose B.
Amt. paid by insurance policy last year = 408 + 0.20(x) = 0.8(x)
408 = 0.6(x) => x = 408(5/3) = $680
Choose B.