Suppose that a decision makers risk attitude toward monetary gains or losses x given by the utility function U(x) = ln(x+100,000). That is, if she loses $1,000, x = -1000.

If there is a 10% chance that the decision makers car, valued at $20,000, will be totaled during the next year, what is the most that she would be willing to (approximately) pay next year for an insurance policy that completely covers the potential loss?