CT4 April 2012 Question 12 vii)

I am trying to understand how the examiners calculated the reduction in cost to be 3.23%? I am probably missing something straight forward. Thanks

 

=(Percentage of Salary deducted when paid 50% from 3rd year onwards-percentage of salary deducted when paid 100%)/Percentage of Salary deducted when paid 50% from 3rd year onwards.
=(13.3333-12.9167)/12.9176*100.
=3.23%

 

Thanks! Knew it was straight forward.