I can't figure out how to get the Future Value of income deficit in the first retirement year with this information given. I got $309,237 previously but I can not figure out how I entered it in the calculator to get that answer. Please help:/

$116,000: present value of retirement income deficit

25: Number of periods until retirement

4: % inflation rate

6: % after-tax investment return

Buyer info

Mike Cloud:

• age 40
• annual before-tax earned income of $120,000 taken as his salary from the corporation

Beth Cloud

• annual before-tax salary of $60,000
• The corner bookstore has a money purchase pension plan that contributes 15% of compensation; Beth is not yet eligible until two months from now

Mike and Beth Cloud

• plan to retire in 25 years
• want you to assume a retirement period of 30 years (chosen to coincide with a conservative estimate of life expectancy); assume there will be no reduction in retirement income needs in the even of the death of one spouse
• will remain in their present residence during retirement and not use available home equity for retirement income needs
• after thorough analysis of their present budget and their projected retirement budget, they have determined that their annual before-tax retirement income need in today's dollars is $140,000
• -estimate that beth's and Mike's combined social security benefits will provide $24,000 before taxes annually in today's dollars

As a result of extensive discussions regarding their retirement goals, mike and beth estimate their annual before-tax retirement income need to be $140,000 in todays dollars. They will incur income deficits amounting to $116,000 annually in todays dollars.