Fred has the following marginal utility schedule for money.

Dollars $1 $2 $3 $4 $5 Marginal Utility 12 1O 7 5 3 Total Utility 12 22 29 34 37 Fred has an income of $5 and a car worth $3. Fred drives in such a way that he crashes his car once every 2 years. In years that he crashes, he immediately spends $3 to replace the car, leaving $2 to spend on other things. 1. What is Fred's total utility over 2 years if he does not crash his car in year 1, then crashes it in year 2? 2. Now an insurance company offers Fred the deal that every year he pays them $2, and in years when he crashes, they will give him $3 to replace your car. What is Fred's total utility over 2 years if he does not crash his car in year 1 and does crash it in year 2? 3. How much in dollar terms does Fred gain or lose over two years from buying this insurance? Write a financial gain as a positive number and a loss as a negative number 4. Will Fred buy this insurance. Answer "Yes" or "No"