Determine the yearly premium for a $1000 insurance policy covering an event that, over a long period of time, has occurred at the rate of 2 times in 100. Let X equal the yearly financial gain to the insurance company resulting from the sale of the policy, and let C equal the unknown yearly premium. Calculate the value of C such that the expected gain E(X) will equal zero. Then C is the premium required to break even. To this, the company would add administrative costs and profit.