Suppose you have a health insurance policy with an annual premium of \( \$ 4800 \), an annual deductible of \( \$ 1000 \), and copayments of \( \$ 25 \) for visits to the doctor's offices. Suppose you go through the year with no medical bills at all. What is your total cost for the year? Your total cost for the year is

If you go through the year with no medical bills at all, your only expense would be the annual premium. In this case, you would pay \( \$ 4800 \) for the premium, and since you have no medical services, you won't hit the deductible or incur any copayments. Therefore, your total cost for the year is simply \( \$ 4800 \).