Question

What is the relationship between the value of an annuity and the level of interest rates? Suppose you just bought a 12-year annuity of $7,000 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?


$1.99
Sales0
Views33
Comments0
  • CreatedOctober 01, 2015
  • Files Included
Post your question
5000