A practice sends $12,000 worth of patient account balances to a collection agency. If the collection agency collects 40 percent of this total and retains 25 percent of the amount it collects, calculate the total amount of money the practice will receive.

Question

Quizplus · Accepted Answer

The collection agency collects 40% of $12,000, which is $4,800. It retains 25% of what it collects, so it keeps $1,200 (25% of $4,800), leaving the practice with $3,600 ($4,800 - $1,200).

A Practice Sends $12,000 Worth of Patient Account Balances to a Collection