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. 2/2 Question 6 2Pt - Correct! | Correct Answers John just bought a $400,000 house that is in a wildfire zone. If a wildfire totals the house once every 25 years, what should the homeowner be willing to pay for an annual insurance premium? Assume the insurance company has no other costs. 16,000 16,000 (with margin: O) . 2 Question 7 /& Bt - Correct! Joe just decided to retire from the University of Milwaukee after 30 years of service. As he goes through the retirement process, he learns the details of his defined benefit pension. UM offers its employees an annual retirement payment equal to 3% of their final three years' income times the number of years of service. His salary this year was $65,000, which was up from $62,500 and $60,000 in the prior two years. Based on this information, what annual benefit is Joe eligible to receive in dollars? 56,250