1.Jared and Laura have renters insurance with a $500 deductible and a $20,000 coverage limit. Unfortunately, a fire destroys their apartment, requiring them to stay in a hotel for $100 a night for 10 nights. In addition, they lost $7,000 worth of property. How much will their renters insurance pay?

A.$7,500.

B.$7,000.

C.$6,500.

D.$8,000.

2. Jason, age 49, recently used $10,000 from his IRA to purchase his first home. Which of the following applies?

A.Jason will have to pay taxes and a penalty for taking a distribution from his account before age 59.

B.Jason will not have to pay taxes nor a penalty since he is withdrawing money from his own IRA.

C.Jason will incur a 10% penalty for taking a distribution before age 50, but he will not have to pay income taxes since he is a first-time homebuyer.

D.Jason will have to pay taxes on his distribution, but he will not incur an additional 10% penalty since he is a first-time homebuyer.