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Step 1 – sum the Jan-June sales (US) and the July-Dec sales (US)
325.3 + 320 =£645.3 million

Step 2 – calculate the difference compared to the US target (£650 million)
650 –645.3 = £4.7 million

Step 3 – sum the Jan-June (European) and the July-Dec sales (EU)
445.2 + 454.4 = £899.6 million

Step 4 – calculate the difference compared to the European target (£910 million)
910 – 899.6 = £10.4 million

Tip: in this question, it would have been possible to answer the question after working
out just the US difference, but this is often not the case.

Thus the correct answer is £4.7 million (US); £10.4 million (EU)

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Step 1 – Calculate the Year 2 amount of European Equity funds
European Equity: 12% x $4.5 million = $540,000

Step 2 - Sum the Year 1 Fixed Interest and Year 2 European Equity investments
$800,000 + $540,000 = $1,340,000

Thus the correct answer is (E), $1.34 million

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Step 1 – Calculate the proportional change in the Growth Fund between Year 1 and 2
(4.8 – 4.5) / 4.8 = - 6.25%

Step 2 – Apply this % to calculate the growth Fund value each year up to Year 6
Year 3: 93.75% x 4.5 = 4.2188
Year 4: 93.75% x 4.2188 = 3.955
Year 5: 93.75% x 3.955 = 3.708
Year 6: 93.75% x 3.708 = $3.476 million

Thus the correct answer is (A), $3.48 million

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Step 1 – calculate the proportion of the fund that each investment made up in Year 1
Gilts = 0.2 / 4.8 = 4.17%
Fixed Interest = 0.8 / 4.8 = 16.67%
North American Equities = 0.4 / 4.8 = 8.33%
European Equities = 0.6 / 4.8 = 12.5%
UK Eequities = 1.6 / 4.8 = 33.33%
Pacific Rim Equities = 1.2 / 4.8 = 25%

Step 2 – compare these figures to the % figures shown in Year 2’s pie-chart
Gilts = 4.17% vs. 4%
Fixed Interest = 16.67% vs. 14%
North American Equities = 8.33% vs. 8%
European Equities = 12.5% vs. 12%
UK Equities = 33.33% vs. 40%
Pacific Rim Equities = 25% vs. 22%

Thus the correct answer is (D), UK Equities

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What was Year 2’s decrease in the amount invested in North American and European Equities compared to Year 1?