There was water damage to personal property in a home. The items damaged were originally priced at $4000. The items lose value by 11% per year. The items were four years old when they were damaged. The owner had actual cash value coverage with a deductible of $250.

Question

How much will the insurance company pay the policy holder?

$4000
$1990
$250
$3600

Answer 1

4000(1 - 0.11*4) - 250 = _____

Answer 2

B.) 1990