I have been quoted the following figures by a financial advisor for pension purposes but am having trouble working through them. I thought that in order to increase a figure by 6% the way to do it would be to multiply by 106/100, however the advisor has done this by dividing by 0.94.
ie To increase by 6% (according to the advisor)
£14 126 divided by 0.94 = £15 028
but to my reckoning
To increase by 6% £14 126 x106/100= £14 973
Also £13 955 divided by 0.94= £14 846
but I reckon £13 955 x106/100=£14 792
I'd really appreciate if anyone can throw any light on this for me?
What's going on, am I missing something here? Which is the correct method?