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What is the value of your annuity today

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Reference no: EM13722936

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

What is the value of your annuity today?

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

What if interest rates suddenly rise to 15 percent?

Reference no: EM13722936

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