How much will Kevin's insurer pay for his damaged sofa and love seat if they currently cost $1,200 and $700 and depreciate at $100 per year?

To determine the amount Kevin's insurer will pay for his damaged sofa and love seat, it's important to consider the current replacement costs and the depreciation of these items.

The current cost of the sofa is $1,200, and the current cost of the love seat is $700, leading to a total replacement cost of $1,900. However, since the items have depreciated over time, the insurer typically pays out based on the actual cash value (ACV), which is calculated as the replacement cost minus depreciation.

In this scenario, if we assume that both the sofa and love seat have depreciated by $100 per year and we know that the items are each valued at their current prices without additional context on how long they have been owned, the simplest calculation would combine their current costs. If we consider that the depreciation is being calculated over a given number of years and has already been factored into their current values, the total payment by the insurer would still be based on the current cost of the items.

Thus, the insurer would pay Kevin the total of $1,200 (sofa) plus $700 (love seat), equaling $1,900.

This choice is correct as it reflects the total current replacement cost of