What happens to value of your investment if interest rates

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Reference no: EM131300235

Suppose you just bought a 15-year annuity of $7,400 per year at the current interest rate of 11 percent per year.

What is the value of your annuity today? Present value $

What happens to the value of your investment if interest rates suddenly drop to 6 percent? Present value $

What if interest rates suddenly rise to 16 percent? Present value $

Reference no: EM131300235

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