What is the relationship between the value of an annuity

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Present value and Interest Rates/ what is the relationship between the value of an annuity and the level of interest rates? Suppose you just bought an eight-year annuity of $400 per year when interest rates are 10 percent per year. What happens to the value of your investment if interest rates suddenly drop to 6 percent? What if interest rates suddenly rise to 14 percent?

Reference no: EM13895574

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What is the relationship between the value of an annuity : Present value and Interest Rates/ what is the relationship between the value of an annuity and the level of interest rates? Suppose you just bought an eight-year annuity of $400 per year when interest rates are 10 percent per year. What happens to th..

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