What happens to value of your investment if interest rate

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Suppose you just bought a 25-year annuity of $7,200 per year at the current interest rate of 9 percent per year. What is the value of your annuity today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value $ What happens to the value of your investment if interest rates suddenly drop to 4 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value $ What if interest rates suddenly rise to 14 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value $

Reference no: EM131010355

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