Armando's home insurance has a $3,500 deductible per incident.

This means he pays $3,500 and the insurance company will pay all costs beyond $3,500.

If Armando files a claim for $22,000, we first want to determinehow much he will pay.

Well, he will pay the deductibleamount which is $3,500.

The next question is how much will the insurance company pay? The insurance company will pay the claim amount minus the deductible.

And therefore theinsurance company will pay $22,000 minus $3,500.

And now let's find this difference.

We begin by subtractingin the ones' place value.

Zero minus zero is zero.

In the tens, zero minus zero is zero.

In the hundreds, we cannotsubtract five from zero.

We need to perform anexchange with the two in the thousands' place value.

We exchange one 1,000 for 10 100s.

So now we have a 10 inthe hundreds' place value.

10 minus five is five.

In that thousands' place value we cannot subtract three from one.

We perform another exchange with a two in the tenthousands' place value.

We exchange one 10,000 for 10 1,000s.

10 plus the one already inthe thousands' place value gives us an 11 in thethousands' place value.

11 minus three is eight.

And we still have a one in theten thousands' place value.

The difference is 18,500, and therefore the insurancecompany will pay $18,500 of the $22,000 claim.

I hope you found this helpful.