NAV calculation growth rate

Calixto reviews the endowment’s future liquidity requirements and analyzes one of its holdings in a private distressed debt fund. He notes the following about the fund:

As of the most recent year end:

    The NAV of the endowment’s investment in the fund was €25,000,000.

    All capital had been called.

At the end of the current year, Calixto expects a distribution of 18% to be paid.

Calixto estimates an expected growth rate of 11% for the fund.

Q. Calculate the expected NAV of the fund at the end of the current year.
Your Answer:

25+1.11=27.76-5=22.765
Solution

The expected NAV of the fund at the end of the current year is €25,258,050, calculated as follows:

First, the expected distribution at the end of the current year is calculated asExpected distribution = [Prior-year NAV × (1 + Growth rate)] × (Distribution rate). Expected distribution = [(€25,000,000 × 1.11) × 18%] = €4,995,000.

Therefore, the expected NAV of the fund at the end of the current year is Expected NAV = [Prior-year NAV × (1 + Growth rate) + Capital contributions – Distributions)] × (1 + Growth rate). Expected NAV = [(€25,000,000 × 1.11) + 0 − €4,995,000] × 1.11 = €25,258,050.

My Q is why is there 1.11 twice? we are calculating for one year right?