Urgent Help – NPV Question from March/June17 Sample – ACCA Website

Dear Mr Moffat,

I am appearing for the F9 exam in June and have found your lectures extremely helpful for your preparation.
I would appreciate if you could kindly clarify the calculation of the Selling Price from Year 2 onwards in the question below which I am practising from the ACCA website from March/ June17 Sample Questions. The solution in the Answers is as follows:

Year 1 2 3 4
Selling Price 26.5 28.5 30 26
Inflated at 3.5% 27.43 30.53 33.26 29.84
per year

As per my understanding the selling price for Year2 should be 28.5*1.035 = 29.49 but in the solution it is given as 30.53.
Request you to kindly clarify how the selling price for Year 2, 3 and 4 has been calculated. I am panicking since the exam is day after tomorrow.

Thanks for your help.

Regards,

Malavika