Problema Solution
Amy’s house sustained property damages totaling $12,500. Her insurance policy includes a $500 deductible. After Amy pays the deductible, the insurance company will pay 80% of the expenses. Excluding the deductible, how much money will Amy have to pay to repair the damages?
Answer provided by our tutors
The expenses after the deductible will be $12,500-$500 and Amy will have to pay 20% of the remaining expenses. The total amount Amy will have to pay:
500+0.20(12500-500)
2900
So Amy will have to pay a total of $2,900.