Acasa Insurance Company offers several plans for home insurance. Plan A has a $700 yearly premium with a $3,000 deductible. Plan B has a $1,200 yearly premium with a $1,000 deductible. Suppose a customer insured by Acasa has plan B. This customer makes a fire damage claim of $19,000. The customer has been with the company for three years. How much has the customer gained or lost during this time?

-$4,600

$14,400

$18,000

$17,000

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mckenzie2120288 mckenzie2120288 · Answer 1 · 2018-07-21T13:21:33-04:00

The answer is 14400 because (19000-1000)-(1200*3)=14400

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jepessoa jepessoa · Answer 2 · 2019-12-30T22:06:42-05:00

Answer:

$14,400

Step-by-step explanation:

The customer paid $3,600 in premiums for plan A during three years = $1,200 x 3

When the customer made the claim, he/she needed to pay $1,000 as deductible.

His total payments = $3,600 + $1,000 = $4,600

If the insurance company paid $19,000 for the fire, the customer gained $14,400.

If the customer had chosen plan B, he would have paid $2,100 in premiums for three years = $700 x 3

When the customer made the claim, he/she needed to pay $3,000 as deductible.

His/her total payments = $2,100 + $3,000 = $5,100 which is $500 more than plan A.