7
QuizMultiple Choice

Car Insurance — Quiz

Question 7 • Financial Algebra/Mathematics

Andre's car suffered damage in a minor accident. The collision coverage on the car has a $⁢750 deductible and a limit of $⁢8,000 The repair costs are estimated at $⁢7,000 How much will Andre's insurance cover?

Answer
A
7 dollars comma 000
B
7 dollars comma 750
C
8 dollars comma 000
D
6 dollars comma 250

Explanation

Andre pays the $750 deductible first, so insurance covers the $7,000 repair cost minus $750: $6,250. The $8,000 coverage limit does not reduce the payment because the amount after the deductible is below the limit. The correct choice is $6,250.

AI-written and checked against the verified answer.

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