James 5

James has a personal injury protection policy that covers medical expenses for each person in, on, around, or under his car. Each person can collect up to $50,000. James is involved in an accident, and three people are hurt. One person has $23,000 in medical expenses, one has $500 in medical expenses, and James himself has medical expenses totaling $70,000.

How much money must the insurance company pay out for these three people?

Final Answer:

x =  73500 USD

Step-by-step explanation:

$$\begin{gathered} m=50000 \\ a=\min (m,23000)=\min (50000,23000)=23000\text{USD} \\ b=\min (m,500)=\min (50000,500)=500\text{USD} \\ c=\min (m,70000)=\min (50000,70000)=50000\text{USD} \\ x=a+b+c=23000+500+50000=73500\text{USD} \end{gathered}$$

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