Is this correct? Why or why not?

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 that it is an ordinary annuity and the price is the same as present value.

Present Value = CF * [(1 - (1 + r) ^ -n) / r]

Where: CF is the cash flow per period ($500), r is the discount rate (6%), n is the number of periods (25 years).

Present Value = $500 * [(1 - (1 + 0.06) ^ -25) / 0.06] $7,095.37