To gain some practice with payoff diagrams, assume your medical insurance pays 90% of your medical expenses,

Question:

To gain some practice with payoff diagrams, assume your medical insurance pays 90% of your medical expenses, subject to a $500 deductible and an annual limit of $10,000 payout.Write down your insurance payoff table and graph an insurance payoff diagram, as a function of your medical expenses.What is the slope of the line at each segment?

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