Question: The graph below shows present values and future values of single payments for various interest rates over six periods. Answer the following questions Future Value


The graph below shows present values and future values of single payments for various interest rates over six periods. Answer the following questions Future Value and Present Value of a Single Payment $3,500 Values $3,000 $2.986 $2,500 $2,000 $1,772 $1,500 Present Values $1,340 $1,000 $1,126 $1,000 $500 $0 0 1 2% 2 5% 3 -10% - - ----20% Requncu. Today (n = 0), a company invests $1,000 and expects that investment to grow 10% each period for the next six periods (n = 6). What is the investment's expected future value? A company expects to receive $1.772 in six periods. What is that amount's present value assurning the company's other current investment - opportunities are expected to earn 10% per period
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