Answer:
C. $3,800
Explanation:
The computation of the cost level for both insurance policy is shown below:
We choose $1,000 or 50% which ever is lower
We take the help of the given options
a. For the first option
The 50% is 300 which is less than the 1,000 now we take 80% of ($600 - $300) that comes $240
b. For the second option
The 50% is 500 which is less than 500 now we take 80% of ($1,000 - $300) that comes $560
c. For the third optiion
The 50% of $3,800 i.e $1,900 and $1,000 whichever is less i.e ($3,800 - $1,000) = $2,800 so it is $1,000 now we take the 80% of ($3,800 - $300) i.e $2,800
Thus the amount comes same
Thus this is the right option
