UTS Information Economics

Gama sell key chain. And Gama has an opportunity to receive Rp.400.000 one month from now. If he can earn 10% on his sale in the normal course of events, what is the most he should pay now for this opportunity?

We can know :
FV1 = Rp.400.000, n = 1 and i = 0,1

PV = FVn/(1+i)n

Answer :
PV = Rp.400.000/(1+ 0,1)
= Rp.363.600

The value today (“present value”) of Rp.400.000 received one month from today, given an opportunity cost of 10% is Rp.363.600 .