Question

Ross needs to have a procedure done, and since he is over 65 he is on Medicare. Medicare says that according to their plan the allowed amount is 7/ 8 of what the doctors office charges. Of that allowed amount they will pay 3 /4 and Ross will be out of pocket 1 /4 . If Ross had to pay $262.50, how much did the office want to charge for the procedure?

USA Test Prep Answer is X=$1,200

Answer 1

Answer:$1200.00

Explanation:

Answer 2

`\large \boxed{\$1200.00}`

Explanation:

Let the office charge = x

Amount paid by Medicare = ⅞x

Amount paid by Ross = ¼(⅞x) = $262.50

Solve for x

`\begin{array}{rcrl}(1)/(4) \left((7)/(8)x \right ) & = & \$262.50 & \\(7)/(32)x & = & \$262.50 & \text{Multiplied the fractions}\\\\7x & = & \$8400.00 & \text{Multiplied each side by 32}\\x & = & \mathbf{\$1200.00} & \text{Divided each side by 7}\\\end{array}\\\text{The office wanted to charge } \large \boxed{\mathbf{\$1200.00}}`

Check:

`\begin{array}{rcl}(1)/(4) \left((7)/(8)* \$1200.00 \right ) & = & \$262.50\\\\(1)/(4) \left(\$1050.00 \right ) & = & \$262.50\\\\\$262.50 & = & \$262.50\\\end{array}`

OK.