how is it different? the bonus for eunice is received when she retires, in one year. this is synonymous with “current year”. current year = this coming year. so it is put at the end of the first coming year but IN the current year. putting it next year would be wrong because the inflows and outflows for next year are to be divided by the net investable assets at the START of next year i.e. the END of current year.

similarly, mark’s bonus is recieved at the end of next year. you add it to net investable asset base at retirement, so that is the middle column. it needs to be included in the denominator for when you calculate first year of retirement expenses divided by next years net asset base.

similarly in the 2005 case, she is receiving the retirement bonus in one year when she retires. you dont add it to the second column right? you add it to the first column: “one year from now.” this way, the expenses in first year of retirement are divided by her net asset base at end of year before retirement. think (expenses)1 / (net asset base)0

maybe just the labelings of the columns are different/confusing? mock exam calls it “current year” but 2005 case calls it “one year from now” but its the same thing.

i think everyone jives, let me know if you dont agree.