Answer to Question #158464 in Financial Math for Cassie

Question

Martin has $4,200 in doctor bills for the year. His deductible is $300. His policy pays 80% once he has met his deductible for the year. How much in all did Martin pay including his deductible ?

Answer 1

Answer:

Step 1

Doctor's bill=$4200

Deductible=$300

Step 2

Martin's payment=(4200-300)-($80 \over 100$× 3900)

              =$780

Without excluding deductible

Martin's payment=4200-($80 \over 100$× 4200)

              =$840

Therefore, Martin will pay a total of $840 which includes his deductible.