Question: Bonus Problem (20 points). Determine the maximum insurance premium the person would be willing to pay for a $300,000 insurance just to cover the mortgage

Bonus Problem (20 points). Determine the maximum insurance premium the person would be willing to pay for a $300,000 insurance just to cover the mortgage (Hint: in this case, even insured, if the house is destroyed, the person will suffer a loss in net asset in addition to paying for the insurance premium, and the highest insurance premium needs to be determined through numerical iteration)

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