Question: show direct steps on how to solve Present value County Ranch Insurance Company wants to offer a guaranteed annuity in units of $200 payable at

show direct steps on how to solve

Present value County Ranch Insurance Company wants to offer a guaranteed annuity in units of $200 payable at the end of each year for 25 years. The company has a strong investment record and can consistently eam 11% on its investments after taxes. If the company wants to make 1% on this contract, what price should it set on it? Use 10% as the discount rate Assume it is an ordinary annuity and the price is the same thing as present value What price should the company set on the annuity contract

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