Suppose you just bought an annuity with 12 annual payments of $15,700 at the current interest rate of 11.75 percent per year.

What is the value of the investment at the current interest rate of 11.75 percent?

What happens to the value of your investment if interest rates suddenly drop to 6.75 percent?

What happens to the value of your investment if interest rates suddenly rise to 16.75 percent?