Health insurance Plan A requires the insured to pay $1000 or 50% of total cost, whichever is lower. Plan B requires the insured to pay the initial $300, but then pays 80% of the cost over $300. Which of the following is a cost level for which both insurance plans pay out the same amount?  Choose the correct choice from the following options:
A) $600  B) $1000  C) $3800  D) $5300  E) $6200
Pay out for plan A: Cost-$1,000 or Cost-0.5*Cost=0.5*Cost, when 0.5*Cost&lt;$1,000;   Pay out for plan B: 0.8(Cost-$300);   The question is: for which of the following costs the pay outs are the same.   C-1,000=0.8(C-300) --&gt; for C=3,800 and 0.5C=0.8(C-300) --&gt; for C=800. As we have only $3,800 listed then it must be a correct answer.   Or you can use backsolving for this question:   A. C=$600: pay out for plan A will be   0.5*600= 
<gadget id="calculator">  0.5*600</gadget>
<output>300</output>
300 (as 0.5*600&lt;1,000) and pay out for plan B will be   0.8*(600-300)= 
<gadget id="calculator">  0.8*(600-300)</gadget>
<output>240</output>
240;   B. C=$1000: pay out for plan A will be 0.5*1,00=500 (as 0.5*1,000&lt;1,000) and pay out for plan B will be 0.8*(1,000-300)=560;   C. C=$3800: pay out for plan A will be 3,800-1,000=2,800 (as 0.5*3,800&gt;1,000) and pay out for plan B will be 0.8*(3,800-300)=2,800 --&gt; 2,800=2,800;   D. C=$5300: pay out for plan A will be 5,300-1,000=4,300 (as 0.5*5,300&gt;1,000) and pay out for plan B will be 0.8*(5,300-300)=4,000;   E. C=$6200:pay out for plan A will be 6,200-1,000=5,200 (as 0.5*6,200&gt;1,000) and pay out for plan B will be 0.8*(6,200-300)=4,720.   Answer: $3800.
<result>C</result>
Health insurance Plan A requires the insured to pay $1000 or 50% of total cost, whichever is lower. Plan B requires the insured to pay the initial $300, but then pays 80% of the cost over $300. Which of the following is a cost level for which both insurance plans pay out the same amount?