If You Have a $500 Claim Resulting from a Fire

question 74

Multiple Choice

If you have a $500 claim resulting from a fire in your home and your policy stipulates that your deductible is $500, then the insurance company will pay you

• A)$0
• B)$100
• C)$150
• D)$250
• E)$500

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Definitions:

Compounded Quarterly

A way of calculating interest where the interest is added to the principal balance four times a year, allowing the investment to grow at a faster rate due to the interest on interest effect.

Monthly Payment

The amount of money that needs to be paid each month, commonly associated with loans or subscriptions.

Car Loan

A loan granted specifically for the purchase of a car, where the vehicle itself often secures the loan.

Compounded Quarterly

Calculation of interest on a loan or investment where the interest is added to the principal four times a year.