Question

In 2016, Theresa was in an automobile accident and suffered physical injuries. The accident was caused by Ramon's negligence. In 2017, Theresa collected from his insurance company. She received $15,000 for loss of income, $10,000 for pain and suffering, $50,000 for punitive damages, and $6,000 for medical expenses which she had deducted on her 2016 tax return (the amount in excess of $10,000). How much did Theresa receive in total from the insurance company in 2017?

1) $15,000
2) $10,000
3) $50,000
4) $6,000

Answer 1

Theresa received a total of $81,000 from the insurance company in 2017, which is the sum of $15,000 for loss of income, $10,000 for pain and suffering, $50,000 for punitive damages, and $6,000 for medical expenses.

Step-by-step explanation:

The question is about calculating the total amount of money Theresa received from the insurance company in 2017 after being involved in an automobile accident. To find the total amount, we simply need to add together all the different compensations she received.

Theresa received the following:

• $15,000 for loss of income
• $10,000 for pain and suffering
• $50,000 for punitive damages
• $6,000 for medical expenses

Adding these amounts together gives us:

$15,000 (loss of income) + $10,000 (pain and suffering) + $50,000 (punitive damages) + $6,000 (medical expenses) = $81,000 in total.

Therefore, Theresa received a total of $81,000 from Ramon's insurance company in 2017.