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Your current annual income is 30,000 dollars and there is a 50% chance that your home will be flooded and you will have to pay

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Your current annual income is 30,000 dollars and there is a 50% chance that your home will be flooded and you will have to pay 5,342 dollars to have it repaired. If you have an insurance policy, the insurance company will reimburse your expenses in case the flood happens. What is the maximum amount you would be willing to pay for full insurance, given that your utility from your income after expenses is U(x)=ln(x) ? Use Excel to calculate your answer (to avoid rounding) and then enter your answer in the slot with two digits after the decimal point. Hint: In general, if y=ln(x) then x=ey or x=exp(y) where exp() is the exponential function

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