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4. How much would a homeowner receive with actual cash-value coverage and replacement cost coverage for a three-year old sofa destroyed by a fire? The

4. How much would a homeowner receive with actual cash-value coverage and replacement cost coverage for a three-year old sofa destroyed by a fire? The sofa would cost $960 to replace today, whereas it cost $810 three years ago, and it has an estimated life of six years.

With actual cash-value coverage, the amount the owner would receive for the sofa would be

$______ (round to the nearest dollar)

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