The roberts carry a property insurance policy which covers 70% of the replacement cost of their insurable property, valued at $360,000. they have an 80% co-insurance requirement in the policy. if the family incurs a $290,000 loss, what amount will the roberts recover? $253,750 $290,000 $331,429 $203,000

Amount which is recovered by Robert = $253,750

Step-by-step explanation:

Co-insurance : It is a requirement by the insurance company that the property be insured to the appropriate value.

As given, The property was insured for 70% while the Co-insurance requirement was 80%.

To calculate payment ratio : First find the percentage of loss which is needed to be recovered by insurance and co - insurance requirements :

$290,000 x 0.70 = $203,000 ( Recovered through co-insurance requirement)

$290,000 x 0.80 = $232,000 ( Total amount needed to be recovered )

So, Amount which is recovered by Robert = $290,000 x .875 = $253,750

answer: the value should be used for i in the formula of calculation the monthly payment , the interest rate per period is 0.85.

step-by-step explanation:

the given rate of interest i= 85%

in calculating the monthly payment for a loan with an interest rate compounded monthly, the value of the interest rate per period we use in the formula must be in decimal form.

to convert it in decimal, we divide it by 100, we get

hence, the value should be used for i in the formula of calculation the monthly payment , the interest rate per period is 0.85.