insurance premium payment

with reference to to page 19 " The breakeven premium is calculated by equating the pres-ent value of expected premiums with the present value of the expected payout": 2.850327X = 0.009681 How is the present value of the expected payout calculated to be 0.009681? "

I need help with the example related to insurance premium payment in FRM Part I Book Financial Markets and Products Chapter 2. Any help would be greatly appreciated! Assume that interest rates for all maturities are 4% per year (with semiannual compounding) and premiums are paid once a year at...