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Sagot :
He is missing future value.
What is future value?
The worth of an asset at a future date is referred to as its future value. It is the present value multiplied by the accumulation function; it is the nominal future sum of money that a particular sum of money is "worth" at a specific time in the future assuming a certain interest rate or, more broadly, rate of return.
Future value is the value that will exist in the future. So, at 10%, Rs 110 is the future worth of Rs 100. The present value is useful in making investment decisions that are based on the current value.
The worth of a current asset at a future date based on an estimated rate of growth is known as future value (FV).
To know more about future value follow the link:
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