Sprin 2013_ Q8

HI,



I have two queries on the model solution for this question.



1. For the NF Accumulation rate calculation should we round the CMT to nearest 1/20? Where in the syllabus it is mentioned?





2.In the model solution, the accumulation rate is calculated as 3.5%-2.25%=1.25%, but then 2.25% (instead of 1.25%) is used in the calculations. I hope this is incorrect.



Please help.



Thanks

Sprin 2013_ Q8