Question

a heavy windstorm damaged a fence, which cost $8,000 to repair. the home insurance includes a $500 deductible.
what will the insurance company pay if the coverage limit is $10,000?

Explanation:

Step1: Understand the insurance payment concept

The insurance company pays the repair cost minus the deductible, but not exceeding the coverage limit.
The repair cost is $C = 8000$, the deductible is $D=500$.

Step2: Calculate the payment amount

The amount the insurance company pays is $A = C - D$.
Substitute the values: $A=8000 - 500=7500$.
Since $7500<10000$ (the coverage limit), this is the valid amount.

Answer:

$7,500$