Most insurance companies will replace a vehicle any time an estimated repair exceeds 80% of the "blue-book" value of the vehicle. Michelle's insurance company paid $7000 for repairs on her car after an accident. What can be concluded about the blue-book value of the car?

The Blue Book value of the car is probably greater than $8750.

Explanation:

The term Blue Book Value is used to refer to the value of a vehicle by a guide known as the Kelley Blue Book. Since the 1920s, the Kelley Blue Book has served as a standard within the auto industry in the United States.

If Michelle's insurance company paid $7000 for repairs, then:

$7000/0.80 = $8750.

We can therefore conclude that the Blue Book value of the car is probably greater than $8750.

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