What amount would a person with actual cash value (ACV) coverage receive for three-year-old furniture destroyed...

What amount would a person with actual cash value (ACV) coverage receive for three-year-old furniture destroyed by a fire? The furniture would cost $7,500 to replace today and had an estimated life of six years.

Insurance payment

Solutions

Expert Solution

Insurance payment = Replacement cost - Depreciation

Insurance payment = $7,500 - [($7,500 / 6) × 3]

Insurance payment = $3,750

jeff jeffy answered 1 year ago

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