Conway's Hardware Suffers $95,000 in Fire Damage

Multiple Choice

Conway's Hardware suffers $95,000 in fire damage. The building is valued at $450,000, and the owner has it insured for $300,000 with 80% coinsurance. How much will the insurance company pay?

A) $63,500
B) $78,850
C) $95,000
D) $300,000