Your current disposable income is $10,000. There is a 10% chance you will get in a serious car accident, incurring damage of $3,600. (There is a 90% chance that nothing will happen.) Your utility function is , where I is income. What is the most you would be willing to pay for this policy (rather than no insurance) to get rid of the risk

Retirement investment advisors, inc., has just offered you an annual interest rate of 4.4 percent until you retire in 40 years. you believe that interest rates will increase over the next year and you would be offered 5 percent per year one year from today. if you plan to deposit $13,000 into the account either this year or next year, how much more will you have when you retire if you wait one year to make your deposit?