Annuity Payments and Interest Rates. Suppose you have $500,000 to purchase an annuity. Currently the annuity payments are $35,000 per year as long as you live. What do you think would happen to the...

Annuity Payments and Interest Rates. Suppose you have $500,000 to purchase an annuity. Currently the annuity payments are $35,000 per year as long as you live. What do you think would happen to the annuity payments if interest rates increased? Explain carefully. (Related to Application 2 on page 286.)