You're a small insurance company that insures 2000 people. Let's say that 1 house will flood per year, so the probability of a house flooding is (1/2000). Therefore, the probability of a house NOT flooding is (1999/2000). If a house floods, you have to pay $500,000. How much should you charge monthly in order to break even? $20.84 $41,687.51 $250.12 $68.32

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