Explanation:

Step 1 – Calculate the % change by Department between Quarters 3-4 HR: (1,346 – 1,305) / 1,305 = 3.14%. Note: some people find it quicker to calculate 1,346¸ 1,305 = 1.0314 Marketing: (4,309 – 3,652) / 4,309 = 17.99% Sales: (5,245 – 5,091) / 5,245 = 3.02% IT: (956 – 938) / 956 = 1.92% Finance: (4,463 – 4,545) / 4,463 = - 1.80% R&D: (1,821 – 1,755) / 1,821 = 3.76% Step 2 – Calculate the next quarter’s expenses for each department HR: 103.14% x 1,346 = 1,1388 Marketing: 4,309 x 117.99% = 5,084 Sales: 5,245 x 103.02% = 5,403.7 IT: 956 x 101.92% = 974 Finance: 4,463 x 98.2% = 4,383 R&D: 1,821 x 103.76% = 1,889 Step 3 - Calculate the next quarter’s total expenses 1,388 + 5,084 + 5,404 + 974 + 4,383 + 1,889 = £19,122 Thus the correct answer is (B), £19,100

Explanation:

Step 1 – Calculate Year 2’s investments in North American and European Equities North American: $4.5million x 8% = $360,000 European: $4.5million x 12% = $540,000 Step 2 - Calculate Year 2’s decrease compared to Year 1 North American change + European change = ($400,000 - $360,000) + ($600,000 - $540,000) = $100,000 Thus the correct answer is (A), $100,000

Explanation:

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

Explanation:

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

Explanation:

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