Question

Mark and Connie are insure for 80% of the replacement value of their home, which is valued at $245,000. How much is the policy amount on their house?

Answer 1

$196,000

Explanation:

Given information:

• Value of home = $245,000
• Insurance replacement percentage = 80%

To find the policy amount on their house, find 80% of the value of the home:

`\begin{aligned}\sf Policy\:amount & = \sf 80\%\:of\:245000\\\\& = \sf (80)/(100) * 245000\\\\& = \sf (80 * 245000)/(100)\\\\& = \sf (19600000)/(100)\\\\& = \sf 196000\end{aligned}`

Therefore, the policy amount on Mark and Connie's house is $196,000.

Answer 2

• $196000

Explanation:

• Value of the home = $245000
• Insurance = 80%

Policy amount:

• $245000*80/100 = $196000