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Suppose you just bought a 15-year annuity of $7,700 per year atthe current interest rate of 11 percent per year. What is the valueof your annuity today? (Do not round intermediate calculations andround your answer to 2 decimal places, e.g., 32.16.)Present value $ ?What happens to the value of your investment if interest ratessuddenly drop to 6 percent? (Do not round intermediate calculationsand round your answer to 2 decimal places, e.g., 32.16.) Presentvalue $?What if interest rates suddenly rise to 16 percent? (Do notround intermediate calculations and round your answer to 2 decimalplaces, e.g., 32.16.)Present Value $ ?
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