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

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

$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.

answer for #1 is c

answer for #2 is d

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