Atrap and Bracken are two rival insurance companies. Atrap and Bracken have premiums of $150 and $100 and deductibles of $2,500 and $3,500 respectively. The average expense of surgery is $25,000. For Bracken to break even (suffer no loss and earn no profit) over the passage of 3 years, about how many people among the 1,000 insured people can file a claim for a surgical procedure?a -10b- 14c- 16d- 17e- 20

Accepted Solution

First of all, multiply the amount of people by the premious of 100$. Then multiply the result by 3 years (12*3) :

1) 1000x100x12x3 = 3,600,000 
Then subtract average expense of surgery from deductibles 3500

 25,000-3,500= 21,500
Then divide result1 by result 2 

And the answer is 167 procedures over 3 years.