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Please help me with the following question. Thank you very much. Find fair premium for an insurance product that provide coverage of a risky event

Please help me with the following question. Thank you very much.

Find fair premium for an insurance product that provide coverage of a risky event with the following loss distribution. Round to two decimal places when calculating your answer. (6 points)

Loss amount ($)

Probability

100,000

0.02

20,000

0.05

5,000

0.1

0

0.83

The insurance has a deductible of $5,000. The underwriting costs are 20% of pure premium, claims are paid at end of year, the interest rate is 10%, and claim processing costs are $5,000. The fair profit loading is 5% of pure premium.

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