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Assume that a dwelling has a replacement cost of $750,000, but is insured for only $500,000. The roof of the house is 12 years old
Assume that a dwelling has a replacement cost of $750,000, but is insured for only $500,000. The roof of the house is 12 years old and has a useful life of 30 years. Assume that the roof is severely damaged by a tornado, and the replacement cost is $50,000. Calculate the amount of money that the insured will receive?
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