You drive a 4 year old truck valued at $15,000. You have a $70,000 personal automobile policy with $ 12,000 per person medical payments coverage and both collision ($500 deductible) and comprehensive coverage. Your neighbor drives a five-year old SUV valued at $10,000Your neighbor has a 25/50 / 15 automobile policy with $15,000 in medical payments coverage and both collision ($200 deductible) Early one morning your neighbor was driving down the street while you were driving the opposite way to drop your friend off at her house and your neighbor swerved into your lane and struck your vehicle. Below you will find the damage caused by the accident: Your Bodily Injury: $7,000 Your friend's Bodily Injury: $25,000 Your Car: $8,500 Neighbor's Bodily Injury: $ 3,000 Neighbors Car: $9,000 Using the information above, find the following a ) How much will your policy pay for your bodily injury? Type your answer b ) How much will your policy pay for your friend's bodily injury? Type your answer How much will your neighbor be reimbursed for his car? Type your answer here Round to the nearest cent. DO NOT USE COMMAS OR 33/40 answeredYou drive a 4 year old truck valued at $15,000. You have a $70,000 personal automobile policy with$12,000 per-person medical payments coverage and both collision ($500 deductible) andcomprehensive coverage. Your neighbor drives a five-year old SUV valued at $10,000. Your neighborhas a 25/50/15 automobile policy with $15,000 in medical payments coverage and both collision($200 deductible) Early one morning your neighbor was driving down the street while you weredriving the opposite way to drop your friend off at her house and your neighbor swerved into yourlane and struck your vehicle. Below you will find the damage caused by the accident:Your Bodily Injury: $7,000Your friend's Bodily Injury: $25,000Your Car: $8,500Neighbor's Bodily Injury: $3,000Neighbors Car: $9,000Using the information above, find the following:a) How much will your policy pay for your bodily injurType your answer hereb) How much will your policy pay for your friend's bodily injury?Type your answer herec) How much will your neighbor be reimbursed for his car?Type your answer hereRound to the nearest cent. DO NOT USE COMMAS OR $.61°F M

Answered: You drive a 4 year old truck valued at…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

You drive a 4 year old truck valued at $15,000. You have a $70,000 personal automobile policy with $ 12,000 per person medical payments coverage and both collision ($500 deductible) and comprehensive coverage. Your neighbor drives a five-year old SUV valued at $10,000Your neighbor has a 25/50 / 15 automobile policy with $15,000 in medical payments coverage and both collision ($200 deductible) Early one morning your neighbor was driving down the street while you were driving the opposite way to drop your friend off at her house and your neighbor swerved into your lane and struck your vehicle. Below you will find the damage caused by the accident: Your Bodily Injury: $7,000 Your friend's Bodily Injury: $25,000 Your Car: $8,500 Neighbor's Bodily Injury: $ 3,000 Neighbors Car: $9,000 Using the information above, find the following a ) How much will your policy pay for your bodily injury? Type your answer b ) How much will your policy pay for your friend's bodily injury? Type your answer How much will your neighbor be reimbursed for his car? Type your answer here Round to the nearest cent. DO NOT USE COMMAS OR

33/40 answered
You drive a 4 year old truck valued at $15,000. You have a $70,000 personal automobile policy with
$12,000 per-person medical payments coverage and both collision ($500 deductible) and
comprehensive coverage. Your neighbor drives a five-year old SUV valued at $10,000. Your neighbor
has a 25/50/15 automobile policy with $15,000 in medical payments coverage and both collision
($200 deductible) Early one morning your neighbor was driving down the street while you were
driving the opposite way to drop your friend off at her house and your neighbor swerved into your
lane and struck your vehicle. Below you will find the damage caused by the accident:
Your Bodily Injury: $7,000
Your friend's Bodily Injury: $25,000
Your Car: $8,500
Neighbor's Bodily Injury: $3,000
Neighbors Car: $9,000
Using the information above, find the following:
a) How much will your policy pay for your bodily injur
Type your answer here
b) How much will your policy pay for your friend's bodily injury?
Type your answer here
c) How much will your neighbor be reimbursed for his car?
Type your answer here
Round to the nearest cent. DO NOT USE COMMAS OR $.
61°F M

Expert Solution

Step 1

Insurance is a contract in which an individual or entity receives financial protection or compensation from an insurance firm in the form of a policy. The firm pooled the risks of its clients to make payments more reasonable to the insured.

Insurance policies are used to protect against the possibility of large and minor financial losses resulting from damage to the insured's property or responsibility for damage or injury to a third party.