Mock exam cfa level 2023 version B, question 10B. Human Capital Calculation

the problem says that her salary will increase every year for the next 3 years by 5%, but the solution shows that her salary will increase from year 2. Why is that?

An error?

Shocking, I know.


Salary increase for next 3 years would mean, it will increase from end of 1st year or at the beginning of 2nd Year.

Am I right? or am i missing something here?

Sometimes the wording on mock exams is poor.

Don’t worry about it. The wording on the real exam is clear. Just make sure that once you understand what they meant (regardless of what they wrote) you can answer the question.

1 Like