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Beth insures her $100,000 house with a 80/20 homeowner's policy. She has a fire that does
$10,000 worth of structural damage. How much will the insurance company pay Beth?
$10,000
$3,750
$8,000
$2,000

Respuesta :

Answer:

$8,000

Step-by-step explanation:

The computation of the amount that paid by the insurance company to Beth is  shown below:

The damage is of $10,000

So here 80: 20 represents that 80% is paid by the insurance company and 20% you would be paid

So

= Structural damage × percentage paid by the insurance company

= $10,000 × 80%

= $8,000

Hence, the correct option is third

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