a family pays $ 850 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 .
"upfront payment for insurance plan = 850 $ family needs to pay 20 % of first 1000 $ in expense = 200 $ total amount paid by family when medical expenses are equal to or greater than 1000 $ = 850 + 200 = 1050 $ total amount paid by insurance plan for first 1000 $ = 850 $ total amount paid by family will equal amount paid by plan when medical expense = 1250 $ ( since insurance plan will pay 100 % of amount that exceeds 1050 $ ) answer b"
subtract(1,000, 850)