What relationship between value of annuity and interest rate

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Suppose you just bought a 10-year annuity of $15,000 per year at the current interest rate of 10% per year. - What is the relationship between the value of an annuity and the level of interest rates? - What happens to the value of your investment if the interest rates suddenly drop to 5%? - What if the interest rates suddenly rise to 15%.

Reference no: EM13276105

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