Texts: 45. Jupiter Inc. has a finite risk insurance plan with Travelers Insurance Company. The three-year plan has the following terms: (1) Jupiter Inc. will pay a $1,000,000 premium at the beginning of each year; (2) 5% interest will be credited to each year's beginning balance; (3) the insurer will receive a fee of 10% of each premium; (4) the insurer will provide coverage with an aggregate limit of $10 million for three years; (5) Jupiter's loss payment is $200,000, $2,000,000, and $500,000 for year 1, year 2, and year 3, respectively.
Please find out the "ending balance" of Jupiter Inc. for the third year and explain how Travelers Insurance Company will handle the ending balance.
A: The balance is $158,613, and Travelers Insurance will return it to Jupiter Inc.
B: The balance is $158,613, and Travelers Insurance will keep this surplus.
C: The balance is $445,000, and Travelers Insurance will return it to Jupiter Inc.
D: The balance is $127,250, and Travelers Insurance will return it to Jupiter Inc.
E: None of the above