I can\'t figure out how to get the Future Value of income deficit in the first r

Question

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:

Beth Cloud

Mike and Beth Cloud

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.

Explanation / Answer

Present value of Income deficit = 116,000

Future value at 4% inflation = 116,000 * 1.04^25 = = $ 309,247.01

However, I would suppose that the answer should have been according to return on investment adjusted by inflation = 116000* (1.06/1.04)^25 = $186,747

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