A senior executive is offered a buyout package by his company that will pay him an annual benefit for the next 20 years. After the first payment, each subsequent annual benefit will be adjusted upwards to reflect the percentage increase in the CPI.

You are given:

(i) The first benefit is R and will be paid one year from today.

(ii) The CPI increases 2.2% per year forever.

At an annual effective interest rate of 6.5%, the buyout package has a value of 100,000.

Calculate R.