Question: B4-9 (book/static) Question Help Present value. County Ranch Insurance Company wants to offer a guaranteed annuty in units of $500, payable at the end of

B4-9 (book/static) Question Help Present value. County Ranch Insurance Company wants to offer a guaranteed annuty in units of $500, payable at the end of each year for 25 years. The company has a strong investment record and can consistently earn 7% on its investments after taxes. If the company wants to make 1% on this contract, what price should it set on 1? Use 6% as the discount rate. Assume to an ordinary annuity and the price is the same thing as present value What price should the company set on the annuity contract? (Round to the nearest cont)

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