What is the discounted expected claim cost

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$600,000 with probability 0.01Loss= $100,000 with probability 0.02$ 30,000 with probability 0.03 $0 with probability 0.94

Claim payment are not expected to be paid until one year after the premium is received. If the interest rate is 5 percentm what is the discounted expected claim cost?

Reference no: EM133076519

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