Suppose you just bought an annuity with 10 annual payments of $16,500 at the current interest rate
Fantastic news! We've Found the answer you've been seeking!
Question:
What is the value of the investment at the current interest rate of 12.5 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Value of investment $
What happens to the value of your investment if interest rates suddenly drop to 7.5 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Value of investment $
What happens to the value of your investment if interest rates suddenly rise to 17.5 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Related Book For
Fundamentals of Investments Valuation and Management
ISBN: 978-0077283292
5th edition
Authors: Bradford D. Jordan, Thomas W. Miller
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