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Future Value and Probability

Looking ahead to retirement , you sign up for automatic savings in a fixed income 401K plan to pay 6% per year compounded annually. You plan to invest $3500 at the each year for the next 20 years. How much will your account have in it at the end of 20 year?

A spinner is used for which it is equally probable that the pointer will land on any one of six regions. Three regions are colored red, two are colored green and one is colored yellow. If the pointer is spun twice, find probability it will land on the green and the yellow.

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Problem #1
You invest $3500 at the end of the first year, the balance is $3500.
At the end of the second year, you invest another $3500, the balance is $3500*(1+6%)+$3500=$3500*1.06+$3500.
And ...

Solution Summary

Future value and probability are investigated.