Question

A health insurance policy pays 75 percent of physical therapy costs after a deductible of $240. In contrast, an HMO charges $17 per visit for physical therapy. How much would a person save with the HMO if he or she had 10 physical therapy sessions costing $60 each?

Answer 1

$100

Explanation:

the equation for the health insurance policy could be written like this:

where 'x' is the total amount of the bill

.75(x - 240)

to find 'x' we can multiply 10 sessions at $60 each to get $600

.75(600 - 240) = .75(360) = 270

to find the amount the HMO would cost you can multiply 17 by 10 to get $170

270 - 170 = 100