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)

The answer

a. $503,000.00

b. $612,970.06

c. $635,403.86

d. $667,329.21