Final answer:
Rachel will have to pay a total of $7,000, which includes the deductible and any additional costs that exceed her insurance coverage.
Step-by-step explanation:
Property Damage Insurance
Rachel has $25,000 worth of property damage insurance with a $2,000 deductible. If she causes $32,000 worth of damage to a sports car, she will have to pay the deductible plus any additional costs that exceed her insurance coverage.
The deductible is the amount that Rachel is responsible for paying out of pocket before the insurance coverage kicks in. In this case, Rachel will have to pay $2,000.
The remaining amount that Rachel will have to pay is $32,000 - $25,000 (insurance coverage) - $2,000 (deductible) = $5,000.
Therefore, Rachel will have to pay a total of $7,000 ($2,000 deductible + $5,000 additional costs).