finany

Jonathan's utility of income is represented by: U(T)= ) where represents annual income. He is considering a job that has a 0.2 chance of earning $18130 and a 0.8 chance of earning $75380 a year. How much would Jonathan be willing to pay to insure against the risky income? Answer: $ (DO NOT ROUND YOUR CALCULATIONS UNTIL YOU REACH THE FINAL ANSWER. ENTER YOUR RESPONSE ROUNDED TO TWO DECIMAL PLACES AND NO SEPARATOR FOR THOUSANDS.)