Re: Insurance Calculation
Of course, if the idea is that he'll break even if he fails (including the insurance costs) then the fee should be:
x = (0.6)(102+x) + 10
x = 71.2/0.4
x = $178
and you give him $280 if he fails ($102 for the test and $178 for the insurance).
Edit: did it OK after all.
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