What happens to the value of your investment

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Reference no: EM132004496

Suppose you just bought a 10-year annuity of $10,000 per year at the current interest rate of 10 percent per year.

Requirement 1:

What is the value of the investment at the current interest rate of 10 percent? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Value of Investemnt- $

Requirement 2:

What happens to the value of your investment if interest rates suddenly drop to 5 percent? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Value of Investemnt- $

Requirement 3:

What happens to the value of your investment if interest rates suddenly rise to 15 percent? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Value of Investemnt- $

Reference no: EM132004496

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