A Flood Caused $602,000 in Damages to a Building Owned

question 137

Multiple Choice

A flood caused $602,000 in damages to a building owned by Garcia Engineering. The building, valued at $915,000, was insured for $686,000 despite a coinsurance requirement of 90% in their policy. How much of the loss will be covered by the insurance company? (Round your answer to the nearest cent)

• A) $602,000.00
• B) $606,938.65
• C) $501,483.91
• D) $596,000.00

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Definitions:

Equations

Mathematical statements that assert the equality of two expressions, often used in modeling relationships in various sciences.

Real Return

The return on an investment after adjusting for inflation, reflecting the actual purchasing power of the amount returned.

Net Capital Outflow

The skew in investment patterns between domestic entities investing abroad and foreign entities investing domestically.

Factories

Are industrial sites where goods are produced or processed, typically utilizing machinery and labor.