Adjustments for this year, next year, in two years etc

CFA Level III Portfolio Management
#1

Based on Schweser practice exam AM1 Q 7A

A person is 85 years old and estimates he will need X to support his lifestyle this year. After this year, he wants to increase their real spending by 3% per year.

A mortality table is given that is structured as followes

Year 1: age 86

Year 2: age 87

You are asked to compute the core and excess capital of year 2. What will be the relevant living expenses before incorporating mortality?

X*(1+0.03)1

X*(1+0.03)2

​​​​​​How many years do you need to include in discounting the expenses back to PV?

To me it seems quite random how many years are used for each in different examples. In this one year to calculate future expenses and two years (as I would expect for both) to discount to PV

#2

seems like the question is only asking for core and excess capital attributed to year 2. so you use the 2nd number [X*(1+0.03)2], multiply it with probability of survival and discount it to present day.

#3

This was exactly my approach, guideline answer only compounds by one year, e.g. (1+0.03)2 which led to my confusion

#4

check the probability of survival used in the guideline, is it year 1’s probability?

if so, this is just poor english from schweser’s side (i.e. saying that 2nd year is next year and not this year)