You bought a house for $200,000. Your insurance requirement is 85%. You bought insurance for $120,000 to save money on insurance premiums. Last month, a storm caused $50,000 damage to your house. Determine your required coverage amount and then determine how much the insurance company will pay for the storm damage to your home.

a. Required cost of insurance coverage: _________________ Show your work:

b. Amount of insurance you will receive: ____________________ Show your work: