FOCUS ON PERSONAL FINANCE LL/ACCESS >BI
6th Edition
ISBN: 9781260529326
Author: Kapoor
Publisher: McGraw-Hill Publishing Co.
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Question
Chapter 9, Problem 1P
Summary Introduction
To determine: The amount payable by insurance company.
Expert Solution & Answer
Explanation of Solution
Compute the amount payable by insurance company:
Excel workings:
Excel spread sheet:
Hence, the insurance company will pay $480.
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The Baulding family has a basic health insurance plan that pays 80 percent of out-of-hospital expenses after a deductible of
$ 250$250
per person. If three family members have doctor and prescription drug expenses of
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$ 1 comma 496$1,496,
and
$ 188$188,
respectively, how much will the Baulding family and the insurance company each pay? How could they benefit from a flexible spending account established through Mr. Baulding's employer? What are the advantages and disadvantages of establishing such an account?
Question content area bottom
Part 1
The Baulding family will pay
Chapter 9 Solutions
FOCUS ON PERSONAL FINANCE LL/ACCESS >BI
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