The Economics of Money, Banking and Financial Markets 4th Edition by Frederic Mishkin

Exercise 4

Paul's car slid off an icy road, causing $2,500 of damage to his car. He was also treated for minor injuries, treatments that cost $1,300. His car insurance has a $500 deductible, after which the full loss is paid. His health insurance has a $100 deductible and covers 75% of medical costs (total). What were Paul's out-of-pocket costs from the incident?