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Discuss the goal of the amanda

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Question: Amanda has 30 years to save for her retirement. At the beginning of each year, she puts $5000 into her retirement account. At any point in time, all of Amanda's retirement funds are tied up in the stock market. Suppose the annual return on stocks follows a normal distribution with mean 12% and standard deviation 25%. What is the probability that at the end of 30 years, Amanda will have reached her goal of having $1,000,000 for retirement? Assume that if Amanda reaches her goal before 30 years, she will stop investing.

Reference no: EM131644643

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