A family pays $800 per year for an insurance plan that pays 80 percent of the first $1,000 in expenses and 100 percent of all medical expenses thereafter. In any given year, the total amount paid by the family will equal the amount paid by the plan when the family's medical expenses total which of the following?	Pick one:	A) $1,000	B) $1,200	C) $1,400	D) $1,800	E) $2,200
The family pays $800 per year for the plan, plus (100 percent minus 80 percent) or 20 percent of the first $1,000 in medical expenses, while the insurance company pays 80 percent of the first $1,000, or $800. It must pay an additional $200 to match what the family pays out. Since the $200 comes after the first $1,000 in expenses, it must represent 100 percent of additional expenses. Therefore, there must have been $1,000 plus $200 or $1,200 in medical expenses altogether.   B. $1,200
<result>B</result>
A family pays $800 per year for an insurance plan that pays 80 percent of the first $1,000 in expenses and 100 percent of all medical expenses thereafter. In any given year, the total amount paid by the family will equal the amount paid by the plan when the family's medical expenses total which of the following?