Suppose that a decision maker's risk attitude toward monetary gains or lossesxgiven by the utility functionU(x) =

If there is a 2.5% chance that the decision maker's car, valued at $8000, will be totaled during the next year, what is the most that she would be willing to pay each year for an insurance policy that completely covers the potential loss of her vehicle?

Please round all answers (also intermediate results to 2 decimals).

a.327.28

b.274.10

c.0

d.6.00