Answer:
$595,808.11
Step-by-step explanation:
We assume the retirement account is intended to pay out $5000 per month for 25 years. The amortization formula can be used to find the required amount. The monthly payment A based on principal P with interest at annual rate r for t years satisfies the relation ...
A = P(r/12)/(1 -(1 +r/12)^(-rt))
P = A(12/r)(1 -(1 +r/12)^(-rt))
P = 5000(12/0.09)(1 -(1 +.09/12)^-300)
P = $595,808.11
The required nest egg is $595,808.11.
