why the futur value is much less than the current or present value?



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in your explanation in the relevant course over time value of money, you have said that the the value you get today will be much more than tomorrow value, althought we know that FV= Present Value+interest.. Its obvious that the futur value will be greater that the the present value.

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Future Value indeed contains the present value + interest. But you also need to subtract the risk due to various factors and the opportunity cost of the money. There are many factors due to which your money value could decrease in the future. PV takes into account all those factors and hence the PV is always less than Future Value

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In my own opinion,The Future value is not always constant that is to say it is not always greater than present value because Incase of political instability,the Future value will fall that is why FV is less than PV.

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