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Suppose you bought a 15-year annuity of $6,800 per year at the current discount rate of 11 percent per year. a. What is the
Suppose you bought a 15-year annuity of $6,800 per year at the current discount rate of 11 percent per year. a. What is the value of your annuity today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the present value if interest rates suddenly drop to 6 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the present value if interest rates suddenly rise to 16 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Present value $ 482.86 b. Present value $ 469.33 c. Present value $ 496.56
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