Amy Lou Young purchased a health insurance policy with a $500 deductible and 40% coinsurance. If Amy Lou incurs $6,500 in covered medical expenses, her policy will pay

$3,600$4,600$6,600

policy will pay = $3600

Explanation:

given data

deductible amount = $500

coinsurance = 40%

medical expenses = $6,500

solution

here policy will pay amount that is

policy will pay = (medical expenses - deductible amount) * (1 - 0.40) ... 1

policy will pay = ($6,500 - $500) * (0.60)

policy will pay = $6,000 * (0.60)

policy will pay = $3600