Question

What would it cost an insurance company to replace a family's personal property that originally cost $25,000? The replacement costs

for the items have increased 15 percent.

Answer 1

the replacement cost is $28,750

Step-by-step explanation:

The computation of the replacement cost is shown below:

= Cost of the personal property × (1 + increased percentage)

= $25,000 × (1 + 0.15)

= $25,000 × 1.15

= $28,750

Hence, the replacement cost is $28,750

We simply applied the above formula so that the correct value of the replacement cost could come