Bob has a $234,000 home insured for $175,000, based on the 80 percent co-insurance provision. a....

 

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Bob has a $234,000 home insured for $175,000, based on the 80 percent co-insurance provision. a. How much would the insurance company pay on a $11,500 claim? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.) $10750.53 Amount paid b. If the claim was for $125,000, how much would the insurance company pay out? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.) Pay out c. Is the cost savings on the annual premium worth it? $116853.6 Bob has a $234,000 home insured for $175,000, based on the 80 percent co-insurance provision. a. How much would the insurance company pay on a $11,500 claim? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.) $10750.53 Amount paid b. If the claim was for $125,000, how much would the insurance company pay out? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.) Pay out c. Is the cost savings on the annual premium worth it? $116853.6

Answer rating: 100% (QA)

To determine whether the cost savings on the annual premium is worth it we need to calculate the amo... View the full answer