Number of accidents = number of policyholders * accident rate = 30,000 * 0.06 = 1,800
Total payout = payout per each claim * number of claims
Number of claims = number of accidents
=> Total payout = $8,200 * 1,800 = $ 14,760,000
Total minimum premium = total payout + profit = $ 14,760,000 + $ 1,740,000 = $ 16,500,000.
Minimum premum charge = total minimum premum / number of policyholders
Minimum premium charge = $ 16,500,000 / 30,000 = $550
Answer: $ 550
