Cathy's Apartment Was Broken into and Her Two-Year-Old Sound System

Multiple Choice

Cathy's apartment was broken into and her two-year-old sound system was taken.Cathy had paid $1,400 for the system,but it will cost $1,800 to replace the unit.She has a homeowner's policy with $20,000 coverage for personal property,a $200 deductible,and actual-cash-value coverage.How much will Cathy receive from the insurance to cover this loss assuming the life expectancy of the system is ten years?

A) $920
B) $1,120
C) $1,200
D) $1,800