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using the cells of excel. for example =pv(D8,D5,) What is the relationship between the value of an annuity and the level of interest rates? Suppose
using the cells of excel. for example =pv(D8,D5,)
What is the relationship between the value of an annuity and the level of interest rates? Suppose you just bought a 20 -year annuity of $7,500 per year at the current interest rate of 10 percent per year. What happens to the value of your investment if interest rates suddenly drop to 5 percent? What if interest rates suddenly rise to 15 percent? Complete the following analysis. Do not hard code values in your answers. All answers should be positive values. You want to have $75,000 in your savings account 12 years from now, and you're prepared to make equal annual deposits into the account at the end of each year. If the account pays 6.8 percent interest, what amount must you deposit each year? Complete the following analysis. Do not hard code values in your answers. Your answer should be a positive value Step by Step Solution
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