Don and Judi had a $150,000 repair bill on their home after the tornado went through town. Their policy contained the usual 80% co-insurance clause. Their home's replacement value was $450,000; their policy coverage was $300,000 with a $500 deductible.(Round your percentage calculation to nearest whole number.)
a. How much insurance should they have carried to meet the co-insurance obligation?
b. What percentage of this loss will the insurance company pay?
c. How much of the loss will Don and Judi have to absorb? (Show all work.)