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Suppose you just bought an annuity with 20 annual payments of $8,400 per year at...

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Finance

Suppose you just bought an annuity with 20 annual payments of $8,400 per year at the current interest rate of 10 percent per year.
a. What is the value of your annuity today?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.
b. What happens to the value of your investment if interest rates suddenly drop to 5 percent?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.
c. What if interest rates suddenly rise to 15 percent?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.
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