An insurer sells a one-year policy to many people with the following loss distributions:

Size of loss	Probability of loss
50,000	0.005
30,000	0.01
10,000	0.02
5,000	0.05
0	0.915

Assume:

1) The fair premiums, the administrative expenses and the profit loading are all paid at the beginning of the year;

2) The claims are paid one year later;

3) The interest rate is 8%;

4) The administrative expenses are assumed to be 10% of the fair premiums;

5) The profit loading is assumed to be 5% of the expected claim costs.

Find the fair premium for the policy.