The price of a cycle is Tk. 25,000. It was insured to 85% of its price. The cycle was damaged completely in an accident and the insurance company paid 90% of the insurance. What was the difference between the price of the cycle and the amount received?

Question: The price of a cycle is Tk. 25,000. It was insured to 85% of its price. The cycle was damaged completely in an accident and the insurance company paid 90% of the insurance. What was the difference between the price of the cycle and the amount received?

Solution:
Insured price = 25000 × 0.85
= 21250 taka

the insurance company paid = 21250 × 0.9
= 19125 taka

∴ Difference = 25000 - 19125
= Tk. 5875