Melvin Has an Auto Insurance Policy That Includes Both Collision

Multiple Choice

Melvin has an auto insurance policy that includes both collision and comprehensive coverage.He has a $250 deductible on his collision coverage and a $100 deductible on his comprehensive coverage.His car has a book value of $7,500 when he is in a one-car accident with a tree.The car suffers damages of $5,000.How much will Melvin's insurance company pay for this repair work?

A) $4,750
B) $4,900
C) $7,400
D) $7,250