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You have a car valued at $42,000. You fear that you have a 5% chance of a car accident this year and would estimate that

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You have a car valued at $42,000. You fear that you have a 5% chance of a car accident this year and would estimate that the car would lose 40% of its value in such a case. Given that your personal net wealth, aside from the car is $100,000 and that your utility function is given by the expression U/W) =w What is the maximum price you'd be willing to pay for Full insurance (that would completely restore the value of the vehicle in the event of an accident? Please give your answer in dollar terms to the penny, thus if you find the answer to be $45.2394236 ploase type 45 24

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