The price of a car is ₹6,25,000. it was insured to 80% of its price. The car was damaged completely, and the insurance company paid 90% of the insurance. what was the difference between the price of the car and the amount revived?

Correct option is D

Given:

Price of the car = ₹6,25,000

Insurance coverage = 80%

Amount paid by insurance = 90% of the insured amount

Formula used:

Insurance amount = Price of the car × Insurance coverage

Amount paid by insurance = Insurance amount × Amount paid by insurance percentage

Difference = Price of the car - Amount received from insurance

Solulation:

Insurance amount = ₹6,25,000 × 80%

=> Insurance amount = ₹6,25,000 × 0.8

=> Insurance amount = ₹5,00,000

Amount paid by insurance = ₹5,00,000 × 90%

=> Amount paid by insurance = ₹5,00,000 × 0.9

=> Amount paid by insurance = ₹4,50,000

Difference = ₹6,25,000 - ₹4,50,000

=> Difference = ₹1,75,000