Calculate total amount becky would pay under current policy

Assignment Help Financial Management
Reference no: EM131887199

Becky’s comprehensive major medical health insurance plan at work has a deductible of $750. The policy pays 85 percent of any amount above the deductible. While on a hiking trip, Becky contracted a rare bacterial disease. Her medical costs for treatment, including medicines, tests, and a six-day hospital stay, totaled $8,893. A friend told her that she would have paid less if she had a policy with a stop-loss feature that capped her out-of-pocket expenses at $3,000.

a. Calculate the total amount Becky would pay under the current policy. (Round your answers to 2 decimal places.)

b. Would a $3,000 stop-loss provision on her current policy have reduced Becky's cost for this illness?

Reference no: EM131887199

Questions Cloud

How is e-commerce related to decision support : What are the benefits of each system, under what circumstances would you use one over the other, and how does the Internet play a role in decision support?
What is the total momentum of the system : If a 250. gram cart moving to the right with a velocity of +.31 m/s collides inelastically with a 500. gram cart traveling to the left with a velocity
What is the ball momentum : What is the ball's momentum? If the a ball comes to rest in the catcher's mitt in .085 seconds, how much force does the ball apply on the catcher's mitt?
How the film can effect on popular understanding of cyberlaw : Please choose one of those films and write a summary of how that film can have an effect on popular understanding of CyberLaw.
Calculate total amount becky would pay under current policy : Calculate the total amount Becky would pay under the current policy.
Resistance of the new wire : If we melt this wire and reshape it into a wire with square cross section of side a, what would be the resistance of the new wire?
What will be your apparent weight : If the engines that rotate the space station malfunction, causing the speed of rotation to double, what will be your apparent weight?
Discuss about the three leading erp vendors : To help students better understand Enterprise Resource Planning (ERP) and the three leading ERP vendors: SAP, Oracle and MicrosoftDynamics.
What causes a forming planet to become molten : What causes a forming planet to become molten? Why are Earth and Venus still volcanic while Mars is not?

Reviews

Write a Review

Financial Management Questions & Answers

  Financing corporate purchases and overall capital budgeting

Financing corporate purchases and overall capital budgeting usually requires the finance manager to assess tax rates, dividend payout policy, weighting of capital sources, and more. Before coming to that conclusion please discuss the principles prese..

  What rate of return are investors expecting

Assume that the 8.6% growth rate is expected to continue forever. What rate of return are investors expecting?

  Hart enterprises recently paid dividend

Hart Enterprises recently paid a dividend, D0, of $2.75. It expects to have no constant growth of 25% for 2 years followed by a constant rate of 8% thereafter. The firm's required return is 10%.

  Conservative financing plan instead of more aggressive plan

Hicks Health Clubs, Inc., expects to generate an annual EBIT of $750,000 and needs to obtain financing for $1,200,000 of assets. Their tax bracket is 40%. If the firm goes with a short-term financing plan, their rate will be 7.5 percent, and with a l..

  Working capital cash flow cycle

Working Capital Cash Flow Cycle Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle.

  Leased and several terms are unique to auto leases

Automobiles are often leased and several terms are unique to auto leases. What is your monthly lease payment for a 36-month lease if the sales tax is 7 percent?

  What is the company total market value of debt

What is the company’s total book value of debt? What is the company’s total market value of debt?

  Call option value using the two-state stock price model

You are attempting to value a call option with an exercise price of $105 and 1 year to expiration. The underlying stock pays no dividends, its current price is $105, and you believe it has a 50% chance of increasing to $122 and a 50% chance of decrea..

  Calculate the average return per period for an investor

Calculate the average return per period for an investor who bought 100 shares of the Closed Fund at the initiation and then sold her position at the end of Period 4.

  Payment will go toward the repayment of principal

What percentage of the 2nd monthly payment will go toward the repayment of principal?

  Evaluating capital budgeting project

As a financial analyst, you are tasked with evaluating a capital budgeting project. You were instructed to use the IRR method and you need to determine an appropriate hurdle rate. The risk-free rate is 4% and the expected market rate of return is 11%..

  Uses the proceeds to repurchase shares

Meyer & Co. expects its EBIT to be $87,000 every year forever. The firm can borrow at 12 percent. Meyer currently has no debt, and its cost of equity is 16 percent.    If the tax rate is 35 percent, what is the value of the firm? What will the value ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd