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6. (15 Points) Mr. Bellman's indirect utility function [1:] over wealth {to} is dened by u = mg. His wealth is made up of two

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6. (15 Points) Mr. Bellman's indirect utility function [1:] over wealth {to} is dened by u = mg. His wealth is made up of two assets: $125,000 in cash, and a 1982 Ford Aerostar that he values at $41,375. There is a 20% chance that he will wreck his Aerostar this year, making it worthless to him. How much will Mr. Bellman pay for an insurance policy that will reimburse him the full $41,375 if he wrecks his car

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