Present value.County Ranch Insurance Company wants to offer a guaranteed annuity in units of $200

200, payable at the end of each year for

15 years. The company has a strong investment record and can consistently earn

12% on its investments after taxes. If the company wants to make1% on thiscontract, what price should it set onit? Use

11% 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 annuitycontract?

$____(Round to the nearestcent.)