Present value Q: How much money would have to be saved now, in the present, to obtain $1 at the start of the next period? A: Sm saved now becomes $m(1+r)at the start of next period, so we want the value of m for which m(1+r)=1 That is, m=1/(1+r), the present-value of $1 obtained at the start of next period.Present Value Q: How much money would have to be saved now, in the present, to obtain $1 at the start of the next period? A: $m saved now becomes $m(1+r) at the start of next period, so we want the value of m for which m(1+r) = 1 That is, m = 1/(1+r), the present-value of $1 obtained at the start of next period