21. Please note that this question is worth Double Marks

You have a car valued at $40,000. You fear that you have a 5% chance of a car accident this year and would estimate that the car would lose 40% of its value in such a case. Given that your personal net wealth, aside from the car, is $120,000 and that your utility function is given by the expression:

U(w) = w^0.6

What is the maximum price you'd be willing to pay for Full insurance (that would completely restore the value of the vehicle in the event of an accident)?

[Please give your answer in dollar terms to the penny, thus if you find the answer to be $45.2394235 please type 45.24]