Question

Sam is in a car accident, and there is $5600 worth of damage to his car. It's the doctor bills $1000. How much would he pay? How much does his insurance pay?

a. $6,600; $1,000
b. $4,600; $1,000
c. $5,600; $0
d. $4,600; $0

Answer 1

Sam would pay $4080, and his insurance would pay $1520.

Step-by-step explanation:

To determine how much Sam would pay and how much his insurance would pay, we need to know the insurance policy coverage and deductible. The question doesn't provide this information, so let's assume Sam has a deductible of $500 and his insurance covers 80% of the damages after the deductible has been applied.

Step 1: Calculate the amount Sam would pay:

1. Decrease the total damage by the deductible: $5600 - $500 = $5100
2. Calculate 80% of the remaining amount: $5100 × 0.8 = $4080

Therefore, Sam would pay $4080.

Step 2: Calculate the amount his insurance would pay:

1. Subtract what Sam would pay from the total damage: $5600 - $4080 = $1520

Therefore, his insurance would pay $1520.