Farming is a very risky business because of the possibility that bad weather might cause financial ruin. Farmers usually insure their crops each year against possible losses resulting from bad weather. Determine the annual premium for an insurance policy to cover a farmer's $200,000 wheat crop. Insurance reps believe taht the probability is .03 that the crop will be totally destroyed by adverse weather and the probability is .05 that there will be a loss of $100,000.