Suppose there is a $1,000,000 portfolio with n = 50 credits that each has a default probability of π = 0.02 and a zero recovery rate, the default correlation is 0. In addition, each credit is equally weighted and has a terminal value of $20,000 if there is no default. The number of defaults is binomially distributed with parameters of n = 50 and π = 0.02, and the 95th percentile of the number of defaults based on this distribution is 3. What is the credit VaR at the 95% confidence level based on these parameters?