Question

Armando’s home insurance has

a $2,500 deductible per incident. This means that he
pays $2,500 and the insurance company will pay all
costs beyond $2,500. If Armando files a claim for
$19,400.
a. how much will he pay?
b. how much will the insurance company pay?

Answer 1

a. Armando pays 2500

b The insurance pays 16900

Explanation:

Armando has to pay 2500 always and the insurance company will pay all thats left to pay is what i understand by the question and the total payment both have to do is 19400.

19400

2500 = 16900