Suppose you bought a 25-year annuity of $7,900 per year at the current discount rate of 12 percent per year. a. What is the value of your annuity today? (Do not round intermediate calculations and round your answer to 2 decimal places b. What is the present value if interest rates suddenly drop to 7 percent? c. What is the present value if interest rate suddenly rise to 17 percent?

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Q: What’s the interest rate of a 7-year, annual $3,900 annuity with a present value of $20,000? (Use a…

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A:

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Q: Need excel solution...

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Q: annuity

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A: Solution:- “n” means the number of times a deposit is made.

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A:

Q: What is the future value of an 11%, 5-year ordinary annuity that pays $350 each year? Do not round…

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