Question: Tom's cat needs an expensive surgery. He has had pet insurance for 24 months that cost $20 per month. The procedure cost $5000 but the insurance covers all but 20% of this. How much money did he save by having insurance? Think carefully first, then make a decision:
The insurance cost 24 * 20 = $480. With insurance he pays 5000 * .2 = $1000 for the procedure. So he paid 1000 + 480 = $1480. So he saved 5000 - 1480 = $3520. So the answer is 3520.