Shelly and Chris Have a Homeowner's Policy with $120,000 Coverage,a

Multiple Choice

Shelly and Chris have a homeowner's policy with $120,000 coverage,a $1,000 deductible,and required coverage of 80 percent of the replacement cost.Their home recently suffered extensive fire damage in the amount of $92,000.Assuming the replacement value of the home was $160,000,how much will the insurance company pay on this loss?

A) $73,600
B) $85,312
C) $86,250
D) $92,000