Sandy purchased renter's insurance that covered personal property on an actual cash value basis. She paid $2000 for a living room set three years ago. When the living room set was destroyed by fire, it was 20 percent depreciated. A comparable new living room set will cost $2400. How much will Sandy collect from her insurer?

(a) $2000
(b) $2400
(c) $1600
(d) $1920

Ans: (d) $1920

Business

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