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svetlana [45]
3 years ago
6

Mike has an insurance policy that pays 90% of the replacement cost of personal property damaged in a fire. A fire destroyed a st

ove that Mike paid $350 for but it was now worth only $90. A new one would cost $400. How much will Mike’s insurance company pay?
Business
2 answers:
podryga [215]3 years ago
7 0

Answer:

Explanation:

Mike insurance company will pay = 0.9 of 400 = $ 360

zheka24 [161]3 years ago
7 0

Answer: Mike's insurance company will pay $360. That is, 90 percent of $400.

Explanation: The insurance company pays 90 percentage of the replacement cost of personal property damaged by fire. Although the actual amount Mike paid for the stove was $350 but now was worth $90 due to the fire incident. The insurable amount that was expected to have been communicated to the insurance company was the current market value and not the actual amount parted with, at first. This is because the insured would be at a loss in case of any eventuality.

So it was expected that Mike would have communicated $400 as the current market value to the insurance company to be the insurable amount.

The insurance company would take possession of the damaged stove which is now worth $90 and sell it to salvage buyer most likely at that price to cushion the loss that was incurred. Also, the company would pay $360 to Mike while he bears the remaining balance, which is $40.

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3 years ago
ABC had the following net income (loss) the first three years of operation: $7,100, ($1,600), and $3,600. If the Retained Earnin
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Answer:

The total amount of dividends paid over these three years: $8000

Explanation:

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=> the total net income is the first three years of operation is:

$7,100 -  ($1,600) +  $3,600  

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3 years ago
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3 years ago
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Crop damage policy:

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Insurance\ expense\ per\ month=\frac{12,000}{24}

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Answer:

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