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a guaran- value. County Ranch Insurance Company wants to offer teed annuity in units of $500, payable at the end of each year for twenty-five

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a guaran- value. County Ranch Insurance Company wants to offer teed annuity in units of $500, payable at the end of each year for twenty-five years. The company has a strong investment record and can consistently earn 7% on its investments after taxes. If the company wants to make on this contract, what price should it set on it? Use 6% as the discount rate. Assume it is an ordinary annuity and the price is the same as present value

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