Question

ronaldo has 50/250 bodily injury liability insurance. He loses control of his car and injures 18 children in a little league game, and each child is awarded $20,000 as a result of a lawsuit. How much will the insurance company pay total for the lawsuit?

Answer 1

Ronaldo pays 50/250 of the total amount of each child. If each child gets $20,000 the insurance pays 200/250 of that amount, that means that for each child the insurance pays:

$(20000)(\frac{200}{250})=16000$

Then, in total, the insurance company pays:

$18\cdot16000=288000$

Therefore, the company pays in total $288,000 of the $360000.