Q: If the personal income tax rate is lowered from 42% to 32%, what is the differential savings for a tax payer having an annual income before tax to the tune of $42400?
Options:
(A) $3500
(B) $5000
(C) $4240
(D) $7000
(E) $10000
A: OK... Stream of consciousness: Saving = (42-32)% of 42400 = 4240.
The answer is (C).

Q: Which of the following is a prime number ?
Options:
(A) 33
(B) 81
(C) 97
(D) 93
(E) none
A: OK... Stream of consciousness: Clearly, 97 is a prime number
The answer is (C).

Q: The average of 11 results is 50, if the average of first six results is 49 and that of the last six is 52. Find the sixth result?
Options:
(A) 21
(B) 56
(C) 18
(D) 25
(E) 23
A: OK... Stream of consciousness: 1 to 11 = 11 * 50 = 550
1 to 6 = 6 * 49 = 294
6 to 11 = 6 * 52 = 312
6th = 294 + 312 – 550 = 56
The answer is (B).

Q: A family pays $800 per year for an insurance plan that pays 85 percent of the first $1,000 in expenses and 100 percent of all medical expenses thereafter. In any given year, the total amount paid by the family will equal the amount paid by the plan when the family's medical expenses total.
Options:
(A) $1,100
(B) $1,200
(C) $1,400
(D) $1,800
(E) $2,200
A:

Show your work and conclude with the exact phrasing "Therefore, the final answer is [answer]." where [answer] is just the final number or expression that solves the problem.
user
OK... Stream of consciousness: Upfront payment for insurance plan = 800$
Family needs to pay 15 % of first 1000 $ in expense = 150$
Total amount paid by family when medical expenses are equal to or greater than 1000 $ = 800 + 150 = 950 $
Total amount paid by insurance plan for first 1000 $ = 800 $
Total amount paid by family will equal amount paid by plan when medical expense = 1100 $
(Since insurance plan will pay 100% of amount that exceeds 950$ )
The answer is (A).