QUESTION $8$:

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.

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