Question
Suppose you just bought a 25-year annuity of $7,600 per year at the current interest rate of 12 percent per year. What is the value
Suppose you just bought a 25-year annuity of $7,600 per year at the current interest rate of 12 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 7 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 17 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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