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Suppose you just bought an annuity with 9 annual payments of $15,800 at a discount rate of 12 percent per year a. What is the
Suppose you just bought an annuity with 9 annual payments of $15,800 at a discount rate of 12 percent per year a. What is the value of the investment at the current interest rate of 12 percent? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What happens to the value of your investment if interest rates suddenly drop to 7 percent? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. c. What happens to the value of your investment if interest rates suddenly rise to 17 percent? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Find the EAR in each of the following cases. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g. 32.10 365 days in a year
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