how to calculate income increase with cpi

hi all

i want to calculate the lumpsum requirement of a person who retires say at 60 and desires an income of $100,000 per annum for 20 years

Now the thing is i want the $100,000 to increase by 3% pa to takew into account inflation over the years. Does anyone know how i can do this in a formula?

the current formula i have is

Inflation 3%
Investment
Earning Rate Income 2% Growth 4% 6%

Current Age 54
Retirement Age 59
Years to Retirement 5
Retirement Years 21

After tax income required
**A = today’s dollars $150,000
B = equivalent dollars at retirement $173,886

Capital required to produce income
A = today’s dollars $1,764,611
B = equivalent dollars at retirement $2,842,039
** this is the figure i want to increase by CPI every year.

the formula i use is =FV(C4,B10,-C14,-C18)

thanks!

Is this it?

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However, I get silgthly different value than you did
Wich one is correct

Formula is:

=D3*POWER(1+E3;C3-B3)

Where D is money (150.000), E3 is tax (3%) and c3-B3 is difference od ages (59-54)

hi where would you input the fomula you have shown?

would you replace it where i have my formula? (=FV(C4,B10,-C14,-C18)

E3 is the cpi % figure