Wage growth for current year?

CFA Level III Portfolio Management
#1

CFAI 2017 Mock AM Q15

Not related to the errata update for it.

Turned 62 today. Current salary is $430,000. She retires the day before 64th birthday. Wage growth is 5% annually, all income is paid at end of year. How is end of current year (age 62) income = 451,500? If current salary is 430k, wouldn’t 451,500 be NEXT year’s? Why are we adjusting for wage growth when current year is already known?

#2

Reminded me about the Individual IPS question from 2014. They ask for next year’s liquidity requirements, but they counted those that were going to happen “in the next few weeks”. I’m really upset with this type of questions!