Core capital with mortality probabilities

[archived_user]

Reading 12 example 4.
They did this solution using real dollars annual spending and discounting spending with the real rate.
Can you also do this problem if you have nominal dollars annual spending (growing at the inflation rate) and discounting spending with the nominal rate?
I tried, but I’m not getting the same answer.???

 

[archived_user]

I am a bit confused also. I would have expected that nominal dollars with growth + inflation used but the question uses real dollars. The question does not specify if the spending should keep up with inflation but I would assume it would given how most questions regarding living expenses are answered. Help!