DId they mistake or am I misreading something?
Book 2, Exam 1 morning session #1, it asks for the return for “the coming year”. The return they solve for is for next year, so for example they increased living expenses by inflation for 1 year (100,000 today and 102,000 next year for the calculation)
But in Book 2, exam 2, Question 1, they ask for the return for the “coming year” and returns are calculated for THIS year.
For example, the vignette states that LAST years living expenses were 150,000 which grow at 2% inflation. Based on how they worded the previous exam, I would have assumed to move ahead 1 year, thereby increasing living expenses by (150,00 x 1.02^2) , but instead they solved for this years return which increased living expenses by 1.02 only