Margo has an individual medical expense policy with a $1,000 deductible. She is required to pay 20 percent of covered expenses in excess of the deductible. The insurer will pay 80 percent of expenses in excess of the deductible. If Margo has eligible medical expenses of $28,680, how much will be paid by her insurer? (Round to 2 decimal places)

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Margo has an individual medical expense policy with a $1,000 deductible. She
is required to pay 20 percent of covered expenses in excess of the deductible.
The insurer will pay 80 percent of expenses in excess of the deductible. If
Margo has eligible medical expenses of $28,680, how much will be paid by
her insurer? (Round to 2 decimal places)
Transcribed Image Text:Margo has an individual medical expense policy with a $1,000 deductible. She is required to pay 20 percent of covered expenses in excess of the deductible. The insurer will pay 80 percent of expenses in excess of the deductible. If Margo has eligible medical expenses of $28,680, how much will be paid by her insurer? (Round to 2 decimal places)
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