Assume you have a home which would cost 120000 to replace, Finance Basics

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Assume you have a home which would cost 120000 to replace

Question: Assume you have a home which would cost $120,000 to replace. You currently have the home insured for $85,000. Last night a tornado damaged your home, causing an estimated $25,000 in damage. How much will your insurance company pay for repairing the damage to your home?

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Finance Basics: Assume you have a home which would cost 120000 to replace

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