Question
Suppose you just bought a 20-year annuity of $8,100 per year at the current interest rate of 11 percent per year. What is the value
Suppose you just bought a 20-year annuity of $8,100 per year at the current interest rate of 11 percent per year. |
What is the value of your annuity today? (Do not round intermediate calculations and round your final answer to 2 decimal places (e.g., 32.16).) |
Present value | $ |
What is the present value if interest rates suddenly drop to 6 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places (e.g., 32.16).) |
Present value | $ |
What is the present value if interest rates suddenly rise to 16 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places (e.g., 32.16).) |
Present value | $ |
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