County Ranch Insurance Company wants to offer a guaranteed annuity 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$$ it$?$ Use $6\%$ as the discount rate. Assume it is an ordinary annuity and the price is the same thing as present value.

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Part $1$

What price should the company set on the annuity$$ contract?