(Solution Download) If you are exposed to a 50 50 chance of gaining

If you are exposed to a 50/50 chance of gaining or losing $1,000 and insurance that removes the risk costs $500, at what level of wealth will you be indifferent relative to taking the gamble or paying the insurance? That is, what is your certainty equivalent wealth? Assume your utility function is U (W) = - W-1.