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QUESTION

The Wings and Things owns a building valued at $2,154,000 but has decided toinsure it for only $1,542,000. Their insurance policy stipulates...

The Wings and Things owns a building valued at $2,154,000 but has decided to  insure it for only $1,542,000. Their insurance policy stipulates coinsurance of 80%.  If a fire were to cause $685,000 in damage, how much would the insurance company pay on the claim? (Round your answer to the nearest cent.)

A.$635,403.86

B.$503,000.00

C.$612,969.98

D.$667,329.21

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