Present value E.g., if r= 0.1 then the most you should pay now for $1 available next period is PV =S0.91 1+0·1 And if r=0.2 then the most you should pay now for $1 available next period is PV =S0.83 1+0·2Present Value E.g., if r = 0.1 then the most you should pay now for $1 available next period is And if r = 0.2 then the most you should pay now for $1 available next period is PV = +  =  1 1 0 1 $0 91. PV = +  =  1 1 0 2 $0 83