Question
Suppose you just bought an annuity with 12 annual payments of $16,700 at a discount rate of 14.25 percent per year. What is the value
Suppose you just bought an annuity with 12 annual payments of $16,700 at a discount rate of 14.25 percent per year.
What is the value of the investment at the current interest rate of 14.25 percent?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
What happens to the value of your investment if interest rates suddenly drop to 9.25 percent?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
What happens to the value of your investment if interest rates suddenly rise to 19.25 percent?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
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