Question

1. the home the stancils rented was destroyed by a tornado. their tenant’s insurance covered 85% of the replacement cost of their belongings. how much did the insurance company pay on a $9,700 replacement loss if the stancils have a $100 deductible clause?

Explanation:

Step1: Calculate 85% of replacement cost

First, find 85% of \(9700\). The formula for finding a percentage \(p\) of a number \(x\) is \(x\times\frac{p}{100}\). So, \(9700\times\frac{85}{100}=9700\times0.85 = 8245\).

Step2: Subtract the deductible

The deductible is the amount the insured pays out - of - pocket. So, subtract the deductible of \(100\) from the amount calculated in Step 1. \(8245− 100=8145\).

Answer:

\(8145\)