Question

ova v. math of finance r insurance andres car suffered damage in a minor accident. the collision coverage on the car has a $750 deductible and a limit of $8,000. the repair costs are estimated at $7,000. how much will andres insurance cover? $7,000 $8,000 $6,250 $7,750

Explanation:

Step1: Understand Deductible and Limit

A deductible is the amount the insured pays, and the insurance covers costs after deductible, up to the limit. Here, deductible = \$750, repair cost = \$7,000, limit = \$8,000.

Step2: Calculate Insurance Coverage

Insurance covers (Repair Cost - Deductible) if it's ≤ limit. So, \( 7000 - 750 = 6250 \). Since \( 6250 ≤ 8000 \), insurance covers \$6,250.

Answer:

\$6,250