If repairs cost $25,000 and there's a $2,000 deductible, what would be Ted's settlement amount?

To determine the settlement amount for Ted, we start with the total cost of repairs, which is $25,000. In the context of insurance claims, a deductible is the amount that the policyholder is responsible for paying out of pocket before the insurance coverage kicks in. In this case, Ted has a deductible of $2,000.

To calculate the settlement amount, you subtract the deductible from the total repairs cost. Starting with the total costs:

$25,000 (total repairs) - $2,000 (deductible) = $23,000.

This calculation shows that after accounting for the deductible, Ted's settlement amount would be $23,000, which is the correct answer. This process illustrates how deductibles impact the amount an insured party receives from their insurance claim, effectively reducing the payout by the specified deductible amount.