Bay insurance offers two plans. Plan A: Pay the first $50 of bills and 20% of all bills after that. Plan B: Pay the first $250 of bills and 10% of all bills after that. For what amount of money would plan B save more money? Write an algebraic inequality for the following and solve.
Plan A pays 50 + .20B
Plan B pays 250 + .10B
There is some amount of bills, B, that would result in the same cost.
What amount of bills would you imagine would be the break even point between these two plans, i.e., result in the same payout? How might you determine that amount?
Which plan would then result in less cost?