Question

An insurance policy pays 80% of the first $20,000 of a patient's medical expenses, and 60% of the remainder. If the patient's total medical bill is $72,000, how much will the policy pay?

Answer 1

Answer:

The policy pay $47200 .

Step-by-step explanation:

As given

An insurance policy pays 80% of the first $20,000 of a patient's medical expenses, and 60% of the remainder.

80% is written in the decimal form.

$= \frac{80}{100}$

= 0.80

Medical expenses pay by the insurance policy on first $20000 = 0.80 × 20000

                                                                                     = $16000

As given

Insurance policy pays  60% of the remainder.

The patient's total medical bill is $72,000.

Patient medical bill over $20000 = $72000 - $20000

                                                        =$52000

60% is written in the decimal form.

$= \frac{60}{100}$

= 0.60

Medical expenses pay by the insurance policy on the remainder = 0.60 × $52000

= $31200

Total Medical expenses pay by the insurance policy = Medical expenses pay by the insurance policy on first $20000 + Medical expenses pay by the insurance policy on the remainder .

Total Medical expenses pay by the insurance policy = $16000 + $31200

                                                                                       = $47200

Therefore the policy pay $47200 .