Solve the Problem. -The Midtown Deli Building Has a Replacement Cost of $86,000

question 84

Multiple Choice

Solve the problem.
-The Midtown Deli building has a replacement cost of $86,000 and is insured for $60,200. It suffers a fire loss of $5,600. Find the amount of loss paid by the company. Assume an 80% coinsurance clause.

• A)$3,733
• B)$4,900
• C)$5,600
• D)$4,480

---

Definitions:

Businesses

Organizations or enterprises engaged in commercial, industrial, or professional activities, aiming to earn profits.

Main Idea

The central or most important point that a piece of writing or communication is intended to convey.

Decoding

The process of interpreting or understanding a message or information received.

Message

A piece of information or communication sent from one person or group to another.