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Math (No Calculator) : Linear Inequality Word Problems

The document describes an insurance policy problem presented in the SAT. It provides the details of a client's $250 deductible and 20% coinsurance rate, as well as a $5,000 out-of-pocket maximum. It then asks the reader to determine the inequality that represents the maximum total insured expenses x that would not exceed the out-of-pocket limit. The explanation shows the steps to derive the inequality x < 24,000 by modeling the deductible, coinsurance, and out-of-pocket maximum amounts mathematically.

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155 views2 pages

Math (No Calculator) : Linear Inequality Word Problems

The document describes an insurance policy problem presented in the SAT. It provides the details of a client's $250 deductible and 20% coinsurance rate, as well as a $5,000 out-of-pocket maximum. It then asks the reader to determine the inequality that represents the maximum total insured expenses x that would not exceed the out-of-pocket limit. The explanation shows the steps to derive the inequality x < 24,000 by modeling the deductible, coinsurance, and out-of-pocket maximum amounts mathematically.

Uploaded by

Aron Marku
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

9/6/22, 8:15 PM SAT Dashboard | Khan Academy

13 Math (No Calculator) Exit this review


min

QUESTION 10 OF 10: INCORRECT


Linear inequality word problems
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SKILL
Linear inequality word problems

CROSS-TEST OR SUBSCORE CATEGORIES What is this?


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An insurance agent sells an insurance policy with an out-of-pocket maximum of $5,000. Out-of-
pocket expenses include any deductibles and coinsurance that the client pays beyond the
normal monthly premium. The client has a deductible of $250. This means that the client has to
pay all of the first $250 of expenses insured by the policy. After that, the client has a 20% co-
insurance, meaning the client pays 20% of the insured expenses and the insurance company
pays the remainder. Which inequality represents how much the total insured expenses, x, could
be if the client has not yet reached the out-of-pocket maximum?

x < 26,000
A You may have mixed up when to add and when to subtract the deductible
amount, modeling the situation incorrectly with 0.2(x + 250) − 250 < 5000.

x < 25,000
B You may have forgotten to include the deductible in the total out-of-pocket
expenses, modeling the inequality as 0.2(x − 250) < 5000.

C x < 24,000

x < 23,750
D You may forgotten that the co-insurance amount does not include the deductible,
modeling the situation incorrectly with 0.2(x) + 250 < 5000.

 The total out-of-pocket expenses for the client includes the deductible plus the co-
insurance amounts.

The co-insurance is 20% of all of the expenses except the first $250. We can
represent this with 0.2(x − 250). The deductible is a flat rate of $250, only
happening once.

Let's represent the total out-of-pocket expenses as 0.2(x − 250) + 250.

The out-of-pocket maximum is $5000. This means that the total the client pays will
be equal to or less than $5000.

We can represent the entire situation using the inequality:

0.2(x − 250) + 250 < 5000

We have several options about how to solve this inequality. Let's begin by
subtracting 250 from each side.

0.2(x − 250) < 4750

Next, we can divide both sides of the inequality by 0.2.

x − 250 < 23,750

Finally, let's add 250 to each side.

x < 24,000

The total insured expenses must be less than $24,000 if the client has not yet
reached the out-of-pocket maximum.

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