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

Click here to open the graph$($s$)$ in a new tab.

Required:

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, assuming the company's other current investment opportunities are expected to earn $10\%$ per period?

The difference between the present value and future value for a given rate represents:

The difference between present value and future value:

The difference between present value and future value:

A company has the choice of receiving $$1,000$ today from a customer or receiving $$1,340$ in six periods. Which option does the company prefer, assuming the company's other current investment opportunities are expected to earn $5\%$ per period?

A company has the choice of receiving $$1,000$ today from a customer or receiving $$1,200$ in six periods. Which option does the company prefer, assuming the company's other current investment opportunities are expected to earn $2\%$ per period?