What Size Nest Egg Do We Need in Order to Retire

question 65

Multiple Choice

What size nest egg do we need in order to retire with a 20-year annuity that yields $5000 per month if the retirement account pays an APR of 6%?

• A)$678,354.2
• B)$697,903.9
• C)$701,340.7
• D)$709,541.3

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Definitions:

Calcaneal Tendon

Also known as the Achilles tendon, it is the tendon at the back of the ankle, connecting the calf muscles to the calcaneus (heel bone) and facilitates walking, running, and jumping.

Gastrocnemius

A major muscle located in the back part of the lower leg, contributing to plantar flexion of the foot.

Tibialis Anterior

A muscle in the lower leg that dorsiflexes and inverts the foot, playing a key role in walking and running.

Quadriceps Group

A muscle group located in the front of the thigh, responsible for extending the knee and composed of four muscles.