A company insures a town for liability during its Christmas parade. The company will charge an annual premium equal to expected claims plus a relative security loading of 1/3.

Given the following:

- Annual claims are 3, 5, or 7 and are independent.

- P(3) = 0.76

- P(5) = 0.15

- Premiums are payable at the beginning of the year.

- i = 0

- Initial surplus = 3

Calculate the probability of ruin within the first two years.