Multiple choice

The price of a car was Rs. 435000. It was insured to 80% of its price. The car was damaged completely in an accident and the insurance company paid 95% of the insurance. What is the difference between the price of the car and the amount received?

  1. Rs. 17400

  2. Rs. 17500

  3. Rs. 18500

  4. Rs. 20400

  5. None of these
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A Correct answer
Explanation

Price of the car = Rs. 435000

Car is insured to 80% of its price.

Insured price = 435000 × 80/100 = Rs. 348000

Insurance company paid 95% of the insurance. 

Amount paid by insurance company = Insured price × 95/100

= 348000*95/100

= 330600

Difference between the price of the car and the amount received = Rs. 348000 - Rs. 330600 = Rs. 17400

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