Present Value - County Ranch Insurance Company wants to offer a guaranteed annuity in units of $600, payable at the end of each year for 10 years. The company has a strong investment record and can consistently earn 10% on its investment after taxes. If the company wants to make 1% on this contract, what price should it set on it? Use 9% 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 annuity contract?