Your utility function is U = ln(4*I), where I is the amount of income you make in a given year. Suppose that you typically make $30,000 per year, but there is a 5 percent chance that you will get sick and lose $20,000 in income due to medical costs.

Suppose you can buy insurance that will cover your losses if you get sick. What would be the actuarially fair yearly premium? What is your expected utility if you buy the insurance policy? Round your answer to two decimal places

What is the most that you would be willing to pay for this policy? Round your answer to the nearest dollar. To answer, use the rules of logarithms