Question

Twyla Foreman owns a home with a replacement value of $167,500. She insures it for 80 percent of its replacement value. What is the total amount of insurance on Foreman’s home?

Answer 1

The correct answer is that the total amount of insurance coverage on Twyla Foreman's home is US$ 134,000

Explanation:

1. Let's review the information given to solve the question.

Replacement value of Twyla Foreman's home = US$ 167,500

Amount of insurance coverage = 80% of Twyla Foreman's home replacement value

Amount of insurance coverage = 80% of US$ 167,500

Amount of insurance coverage = 80% * 167,500

Amount of insurance coverage = 0.8* 167,500

Amount of insurance coverage = 134,000

The correct answer is that the total amount of insurance coverage on Twyla Foreman's home is US$ 134,000