going through the mock second time and majorly confused with Q 15, why are they applying probabilities for previous year? To calculate her income?

They are using probabilities of survival as HC calculations need it => See curriculum

probability of her not dropping dead for each year.

I get that part, but I don’t get their way of applying prob of year 62 (0) to next years salary basically, 451,500. What I’m doing is prob of surviving 63 applied to salary at 63, which is 451,500. I guess its an issue of time periods.

Also, the case stated current salary is 430,000, so why are rhey multiplying it by growth rate, wouldn’t it be salary for year 63?

Salary is stated to be paid entirely at year end.

Details my friend

OMG, how did I not see it?! I must have read it 100 times! Thank you for pointing it out! Finally got it