Homework: 5-3 MyFinanceLab: Assignment: Module Five Homework Save Score: 0 of 1

Question

Homework: 5-3 MyFinanceLab: Assignment: Module Five Homework Save Score: 0 of 1 pt 4 of 6 (4 complete) Hw Score: 33.33%, 2 of 6 pts Problem P10-3 (similar to) Question Help How much would a homeowner receive with actual cash-value coverage and replacement cost coverage for a three-year old sofa destroyed by a fire? The sofa would cost S 800 to replace today, whereas it cost $ 688 three years ago, and it has an estimated life of six years. With actual cash-value coverage, the amount the owner would receive for the sofa would be s(Round to the nearest dollar.) Enter your answer in the answer box and then click Check Answer. part remaining Clear All Check Answer

Explanation / Answer

a). Solution :- Amount received by owner for the sofa (with actual cash coverage) = 800 * 3 / 6

= $ 400.

b). Solution :- Amount received by owner for the sofa (with replacement cost coverage) = $ 800 (Actual replacement cost for sofa).

Conclusion :-

Amount received by owner for the sofa (with actual cash coverage) $ 400. Amount received by owner for the sofa (with replacement cost coverage) $ 800.

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.