Problemsuppose you just bought a 20-year annuity of 7500, Ask an Expert

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Problem:

Suppose you just bought a 20-year annuity of $7,500 per year at the current interest rate of 10 percent per year.

Required:

Question 1: What is the value of your annuity today?

Question 2: What happens to the value of your investment if interest rates suddenly drop to 5 percent?

Question 3: What if interest rates suddenly rise to 15 percent?

Please describe in detail and show all techniques

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91147117

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