Suppose that a decision makers risk attitude toward monetary gains or losses x given by the utility function U(x) = ln(x+10,000) If there is a 5% chance that one of the decision makers car, valued at $7,500, will be totaled during the next year, what is the most that she would be willing to (approximately) pay each year for an insurance policy that completely covers the potential loss?

$327

$670

$545

$1000