Hi Please can someone help with this question? a) The first calculation under the solution to Q1) iii) states: "Reserves as per Regulation 29 amount to R1 244.2 million (914.3 + 329.9)" Please can someone explain where the 914.3 comes from since I think it should be 822.3? If I use the 822.3 then making the two reserve depleting options breakeven (i.e. increasing reserves by 329.9) still does not meet the solvency requirement of 25% (822.3+329.9 = 1152.2; 1152.2/4770.3 = 24.15% < 25%). b) Also, the second calculation in the solution states: "Overall the scheme would need at least an additional 24.1% = (0.25*4332.9 – 822.3)/(0.25*4322.9) increase over and above the average 9.26% increase already put through (average overall increase = (1.0926) * (1.241) -1 = 35.6%) in order to reach a solvency level of 25%." Please can someone explain this to me, since 4322.9*1.241 (the extra increase mentioned above) = 5377.1? Also, the costs (HC and non-HC) and other income remain the same. The increase in Risk Contribution is 824.9 (5377.1-910*1.241-3422.9) making allowance for Member savings (originally 910) to be retained in same proportions as before - 25%, 15%, 10% and 0% for each of the four options. This means the increase in surplus and reserves is also 824.9 since expenditure did not increase. The resultant reserve is then 824.9+822.3 = 1647.2 and solvency is 1647.2/5377.1 = 30.6% which is significantly more than 25%. By my calculation, increasing overall contributions by an extra 11.15% gives: Gross contribution = 4332.9*1.1115=4816.1 Risk contribution = 3422.9*1.1115 = 3804.5 HC exp = 3216.9 Non-HC exp = 211.2 Other inc = 65 Total members funds = 874.8+(3804.5-3422.9) = 1256.4 Reval. res = (52.5) Acc. funds per Reg 29 = 1203.9 Solvency = 1203.9/4816.1 = 25% Sorry for the long post and hopefully it is clear, but I really need some guidance on where I'm going wrong/what am I missing. Thanks R