Fractions and Decimals

Discrete Mathematics

Differential Equations

Solved on Feb 20, 2024

What is the owner's out-of-pocket cost for the $\$ 25,000.00$ foundation repair if the deductible is $\$ 2000.00$ ?

STEP 1

Assumptions
1. The deductible for the insurance is $2,000.00.<br />2. The repair cost for Event 2 (Foundation repairs) is$ 25,000.00.
3. The deductible is the amount the owner must pay out of pocket before the insurance covers the remaining costs.
4. The deductible applies per event.

STEP 2

First, we need to determine if the repair cost for Event 2 exceeds the deductible amount.
$Repair\, Cost\, for\, Event\, 2 > Deductible$

STEP 3

Now, plug in the given values for the repair cost for Event 2 and the deductible to compare them.
$\$25,000.00 > \$2,000.00$

STEP 4

Since the repair cost for Event 2 is greater than the deductible, the owner will have to pay the deductible amount out of pocket, and the insurance will cover the rest.

STEP 5

Calculate the owner's out of pocket cost, which is equal to the deductible.
$Owner's\, Out\, of\, Pocket\, Cost = Deductible$

STEP 6

Plug in the value of the deductible to find the owner's out of pocket cost.
$Owner's\, Out\, of\, Pocket\, Cost = \$2,000.00$
The owner's out of pocket cost for the repair after submitting an insurance claim for Event 2 is $2,000.00.

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