A physicians usual fee for a routine eye examination is 80 U

A physician’s usual fee for a routine eye examination is $80. Under the discounted fee-for-service arrangement the doctor has with Plan A, the
fee is discounted 15 percent for Plan A members. This month, the doctor has seen five Plan A members for routine eye exams.

1. What is the physician’s usual fee for the five patients? $

2. What will the physician be paid for one Plan A member’s exam? $

3. What will the physician be paid for the five Plan A eye exams? $

Solution

1.

Usual fee for one patient is $80

So usual fee for five patients =5*80=$400

2.

With a 15% discount in plan A physician is paid: 80*(1-15/100)=68

3.

For five plan A exams he get:5*68=340