Future Business Leaders of America (FBLA) Business Calculations Practice Test

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Dive into the FBLA Business Calculations Test. Sharpen your analytical skills with multiple-choice questions and gain insights with detailed explanations. Excel in your exams!

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How much will Sue receive from her insurance company if her car worth $1500 was totaled and she has an $500 deductible?

$1200
$1500
$500
$700

The correct answer is: $700

To determine how much Sue will receive from her insurance company after her car is totaled, we start with the total worth of the car, which is $1500. A deductible is the amount that the insured person must pay out of pocket before the insurance coverage kicks in. In this case, Sue has a deductible of $500. To calculate the amount Sue will receive, we subtract the deductible from the total value of the car. Here's the calculation: Total value of car: $1500 Deductible: $500 Amount paid by insurance: $1500 - $500 = $1000 The answer provided as $700 is incorrect as it appears to undercalculate the total after deducting the deductible from the car's worth. The correct amount she should receive is $1000, which reflects the value of the car minus the deductible.